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Assignment 5: #1. In 1950 the median family income was $3,319, while the average Major League baseball player salary was $13,228. In 1998 the median household income was $38,885, while the average Major League baseball player was $1.4 million.
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Assignment 5: #1 In 1950 the median family income was $3,319, while the average Major League baseball player salary was $13,228. In 1998 the median household income was $38,885, while the average Major League baseball player was $1.4 million.
Using the CPI.xls, convert each of the1950 incomes to constant 1998 dollars. The 1950 Median family income in 1998 Constant Dollars is: The 1950 average MLB player salary in 1998 Constant Dollars is:
Then compare the 1950 average salary of baseball players in 1998 constant dollars to the actual 1998 average baseball player salary. Were you better off being a Major League Baseball player in 1950 or 1998? You were better off in 1998 as a 1998 player is making $1.4million. This is a lot more than the 1950 player is making in 1998 Constant Dollars ($89,467.39).
Next compare the average household 1950 income in constant 1998 dollars to the actual 1998 value. Were you better off earning the median household income in 1950 or 1998? Again, you’re better off in 1998 making $38,885. This is much more than the median family income in 1950 in 1998 Constant dollars ($22,448.01).
Have baseball player salaries risen faster than the salaries of the average worker? To answer this question answer the following question: What percent are the actual incomes in 1998 greater than the respective 1998 constant dollar values of the 1950 incomes? Show your work for both the median household and the baseball player salaries.
Remember for “percent greater / less than” problems the value that comes after the word “than” is your reference value in the equation:
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