3. Comparing salaries from different times Consider golfers who led the Professional Golfers’ Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation). To convert the original earnings of Nelson, Nicklaus, and Pavin, use the formula for converting dollar figures from an earlier era into year 2016 U.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar. Year Golfer Nominal Winnings U.S. CPI Winnings in 2016 Dollars (Dollars) (1983 = 100) 1945 Byron Nelson 63,336 18 264    1973 Jack Nicklaus 308,362 44.4      1991 Corey Pavin 979,430 136.2      2016 Dustin Johnson 9,365,185 240.0 9,365,185   True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is the same as the golfer with the highest PGA winnings after adjusting for inflation. True   False

Question

3. Comparing salaries from different times

Consider golfers who led the Professional Golfers’ Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation).
To convert the original earnings of Nelson, Nicklaus, and Pavin, use the formula for converting dollar figures from an earlier era into year 2016 U.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar.
Year
Golfer
Nominal Winnings
U.S. CPI
Winnings in 2016 Dollars
(Dollars)
(1983 = 100)
1945 Byron Nelson 63,336 18 264   
1973 Jack Nicklaus 308,362 44.4     
1991 Corey Pavin 979,430 136.2     
2016 Dustin Johnson 9,365,185 240.0 9,365,185
 
True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is the same as the golfer with the highest PGA winnings after adjusting for inflation.
True
 
False
 
 

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