Question

The 2012 box office receipts for the movie The Avengers were $1,515.8 million. By way of comparison, the 1977 receipts for Star Wars were $798.0 million. If the Consumer Price Index was 60.6 in 1977 and 229.6 in 2012, which of the following is true?
a. The real receipts of The Avengers were almost four times greater than those for Star Wars.
b. The real receipts of Star Wars were nearly two times greater than those for The Avengers.
c. The real receipts of The Avengers were one-third of those for Star Wars.
d. The real receipts of Star Wars were about 33 percent greater than those for The Avengers.

Answer 1

Answer: b. The real receipts of Star Wars were nearly two times greater than those for The Avengers.

Explanation:

Real reciept = (Dollar amount) ×( Ending-period CPI) ÷ (Beginning-period CPI)

Here, Receipt for Avengers in 2012 = $1,515.8 million

Receipt for Star wars in 1977 = $798.0 million

CPI in 2012 = 229.6

CPI in 1977 = 606

Now, Real receipt of Star wars in 2012 = $((798.0) × (229.6) ÷ 60.6)

=$ 3023.45 ≈ Twice  of receipt for Avengers in 2012.

[Twice of receipt for Avengers in 2012 = $3031.6]

Hence, the correct statement is b."The real receipts of Star Wars were nearly two times greater than those for The Avengers."