Anindexisanumericalscale.Characteristicsofanindexcanbeusedforthefollowing

Anindexisanumericalscale.Characteristicsofanindexcanbeusedforthefollowing:

to compare variables with one another or a reference number,
togiveinformationaboutgeneraltrends,and
tohelpmakecomparisonsandjudgments.

Itisoften calculatedasaweightedsumofvariousfactorsresultinginasinglesummarynumber.

TheFanCostIndex(FCI),compiledbyTeamMarketingReport, tracksthecost fora familyoffourtoattendaprofessionalsportingevent.TheFCIincludes thepricesof2average-priceadulttickets,2 average-price child tickets, 4 smallsoft drinks, 2 small other drinks,

4regular-sizehotdogs,parkingfor1car,2gameprograms,and2leastexpensive,adult-sizeadjustablecaps.TheAverageTicketPriceinthefollowingtablesrepresentstheaverage costofaticket for eachmember ofthe family.

TheFCIforeachTexasteaminprofessionalbaseball,basketball,andfootballfor2006 and2007isshowninthefollowingtwotables.TheSoftDrinkcolumnincludestheprice of1 drink and itssize in ounces.

2006FanCostIndex

Team / Avg. TicketPrice / SoftDrink
(sizeinoz) / OtherDrink / HotDog / Parking / Program / Cap / FCI
Rangers / 15.81 / 2.75 (16) / 6.00 / 2.50 / 8.00 / 5.00 / 10.00 / 134.24
Astros / 26.66 / 4.00 (21) / 7.00 / 4.00 / 10.00 / 4.00 / 11.00
Spurs / 45.88 / 3.75 (24) / 6.25 / 4.00 / 10.00 / 5.00 / 18.00 / 283.02
Mavericks / 54.24 / 2.75 (12) / 4.00 / 4.00 / 20.00 / 6.00 / 15.00
Rockets / 38.64 / 4.00 (22) / 5.75 / 4.25 / 15.00 / — / 20.00
Cowboys / 66.12 / 3.50 (32) / 5.00 / 3.50 / 12.00 / 5.00 / 10.00 / 344.48
Texans / 56.97 / 3.25 (21) / 6.00 / 5.00 / 15.00 / 5.00 / 20.00

(Compiledfrom

2007FanCostIndex

Team / Avg. TicketPrice / SoftDrink(sizeinoz) / OtherDrink / HotDog / Parking / Program / Cap / FCI
Rangers / 16.47 / 3.00 (20) / 6.50 / 2.75 / 8.00 / 5.00 / 11.00 / 141.88
Astros / 26.90 / 4.00 (21) / 7.00 / 4.25 / 10.00 / 4.00 / 12.00 / 196.60
Spurs / 51.24 / 2.50 (24) / 6.00 / 4.00 / 10.00 / 6.00 / 21.00 / 306.96
Mavericks / 60.58 / 2.75 (15) / 4.00 / 4.00 / 20.00 / 6.00 / 15.00 / 339.32
Rockets / 41.98 / 4.00 (22) / 7.00 / 4.50 / 15.00 / — / 20.00 / 270.92
Cowboys / 84.12 / 3.50 (32) / 5.00 / 3.50 / 12.00 / 5.00 / 10.00 / 416.48
Texans / 62.41 / 3.25 (21) / 6.00 / 5.00 / 15.00 / 5.00 / 20.00 / 359.64

(Compiledfrom

1.Completethe2006tablebycalculatingthemissingFCIvalues.

2.TherearesevencomponentsintheFCI.Findthelargestpercent increaseinasinglecomponentfrom2006to2007bygivingtheteam,component,andpercentincrease.

3.WhichoftheDallas-areateams(Rangers,Mavericks,Cowboys)hadthefollowingduring2006or 2007:

a.Mostexpensivesoftdrinkintermsofpriceperounce?

b.Leastexpensivesoftdrinkintermsofpriceperounce?

4.EXTENSION:Createa personalcostindex(PCI)inwhich youselectonly theitemsandthe number of those itemsthat you and three friendswould buy (for example,4 tickets,8hot dogs,nosoftdrinks,no caps). In2007,whichteamisthebestbuyaccordingtoyourPCI?Why?

Thefollowingtablecontains theaverageFCIforallteamsinMajorLeagueBaseball(MLB),theNational BasketballAssociation(NBA),and theNational FootballLeague(NFL)for 2002through2007.

FCIAverage

2002 / 2003 / 2004 / 2005 / 2006 / 2007
MLB / 145.26 / 148.66 / 155.52 / 164.43 / 171.19 / 176.55
NBA / 254.86 / 261.26 / 263.44 / 267.37 / 274.67 / 281.90
NFL / 290.41 / 301.75 / 321.62 / 329.91 / 346.16 / 367.31

Thistablecontainstheratesofinflationfrom2003through2007.

Year / 2003 / 2004 / 2005 / 2006 / 2007
InflationRate(%) / 2.27 / 2.68 / 3.39 / 3.24 / 2.85

Usethisinformationandadditionalcalculationstoanswerthefollowingquestions.

5.Didtherateofincreaseofeachsport’saverageFCI exceedtherateofinflationforallthese years? Find the sport, year, and rate of increase for all cases inwhich the averageFCIrateincreasedidnotexceedtheinflationrate.

6.Findthesportandyearinwhichtheaveragerateofincreaseexceededthe inflation ratebythegreatestamount.

7.REFLECTION:WhydoyouthinktheFCIishighestfortheNFLandlowestfor MLB?

8.EXTENSION:Thereareseveralindicesrelatedtoconsumerspending.TwoofthemaretheConsumerPriceIndex(CPI)andthe ConsumerConfidenceIndex(CCI).Findouthowtheyarecalculatedandhowtheyareused.