Here's the question you clicked on:
nslesin
Help please?
I am not sure what the problem is asking for. One possibility is to find the percent increase in inflation from 1978 to 2006 and compare that with the percent increase in healthcare costs from 1978 to 2006. Another possibility is to convert the 1978 costs into 2006 dollars and then compare the 2006 healthcare costs with the 1978 heltacare cost in 2006 dollars.
i think one has to find the percent increase of the health care from 1978 to 2006
If that is all, then it is this: \( \text{percent change} = \dfrac{\text{new value} - \text{old value} } {\text{old value} }\times 100 \)
i think its more cuz it involves CPI :O
Then perhaps it's the second possibility I listed above.
First, let's convert $927,000,000 1978 dollars to 2006 dollars: \( \dfrac{$927,000,000}{65.2} = \dfrac{x}{201.6} \) \(x = $2,866,000,000\) This means that the $927 million cost in 1978 means $2.866 billion in 2006 dollars.
Now let's calculate the percent change from the 2.866 billion cost to the $902 billion cost. \( \text{percent change} = \dfrac{902,000,000,000 - 2,886,000,000}{2,866,000,000} \times 100 \) \( \text{percent change} = 31,372\% \)
So it increased by 31,372%
Yes, adjusted for 1978 dollars. Without adjustment, the percent increase would be much higher.
But we want relative change = absolute change/reference value = new value - reference value/reference value x 100 right?
Like I told,you, I don't really know what the problem wants. The way I did it, it does take the inflation adjustment into account.