1 The Mathematics of

Calculation

1.1 Order of Operations & Formulas

Use the order of operations to evaluate a numerical expression.
Use a calculator to evaluate a numerical expression.
Use the order of operations to evaluate a formula.

1.2 Rounding & Calculators

Round numbers in a real-life context.
Read large and small numbers.
Understand the concept of “garbage in, garbage out.”

1.3 Using Percent

Understand and find a percent of a number.
Determine what percent one number is of another number.
Use percent to represent change.

1.4 Units & Conversions

Use unit analysis to “balance” both sides of a formula.
Convert within a given system of measure.
Convert between different systems of measure.

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Average Monthly Electric Usage
140
120

$122.58
$120.97

$116.13
Cost (dollars)

$112.90

$112.90
100

$108.06
$106.45

$103.23

$100.00
$98.39

$95.16

$91.94
80
60
40
20
0
Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May
Month

Example 1 on page 2 shows how you can calculate your reconciliation

payment when you pay your electric bill on an equal-payment plan.
In May, do you owe more or will you get a refund?

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2 Chapter 1 The Mathematics of Calculation

1.1 Order of Operations & Formulas

Use the order of operations to evaluate a numerical expression.
Use a calculator to evaluate a numerical expression.
Use the order of operations to evaluate a formula.

Order of Operations
Mathematics is a language. In this language, numbers are the nouns. The
operations +, −, ×, ÷, and exponentiation are the verbs. The order of
operations is a set of rules that tells you which operations have priority.

Study Tip
Order of Operations
A mnemonic for
remembering the order 1. Perform operations in Parentheses.
of operations is “Please 2. Evaluate numbers with Exponents.
Excuse My Dear Aunt Sally.” 3. Multiply or Divide from left to right.
4. Add or Subtract from left to right.

Using Order of Operations

From June through April, on an equal-payment plan, you pay $110 each month
on your electric bill. How much do you owe in May?

Average Monthly Electric Usage

140
120
$122.58
$120.97
Cost (dollars)

$116.13
$112.90

$112.90

100

$108.06
$106.45

$103.23

$100.00
$98.39

$95.16

$91.94
80
60
40
20
0
Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Month

SOLUTION Amount you owe Amount you paid

(112.90 + 120.97 + 122.58 + 106.45 + 98.39 + 95.16 + 112.90

+ 116.13 + 103.23 + 100.00 + 91.94 + 108.06) − 11(110)
= 1288.71 − 11(110) Add inside parentheses.
In 2009, the greatest consumption = 1288.71 − 1210 Multiply.
of electricity in the United States = 78.71 Subtract.
occurred in August. The least
occurred in April. You owe $78.71 in May.

Checkpoint Help at

Suppose you paid $95 per month. How much would you owe in May?

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1.1 Order of Operations & Formulas 3

Using Order of Operations

There are 1950 calories in a cup of salad oil, 55 calories in an egg yolk, and
16 calories in a teaspoon of sugar. The other ingredients in the mayonnaise recipe
are essentially calorie free. How many calories are in the mayonnaise recipe?

Homemade Mayonnaise
* 2 egg yolks * 3 4 tsp salt
* 1 2 tsp powdered mustard * 1 4 tsp sugar
* Pinch cayenne pepper * 4 1 2 tsp white vinegar
* 1 1 2 cups salad oil * 4 tsp hot water

Preparation:
Beat yolks, salt, mustard, sugar, pepper, and 1 teaspoon vinegar until thick
and pale yellow. Add about 1 4 cup oil, drop by drop, beating vigorously. Beat
in 1 teaspoon each vinegar and hot water. Add another 1 4 cup oil, a few
drops at a time, beating vigorously. Beat in another teaspoon each vinegar
and water. Add 1 2 cup oil in a fine steady stream, beating constantly. Mix in
remaining vinegar and water. Slowly beat in remaining oil. Cover and
refrigerate until needed. Do not keep longer than 1 week.

SOLUTION

1.5 cups Quarter teaspoon

of salad oil 2 egg yolks of sugar

Total calories = 1.5(1950) + 2(55) + 0.25(16)

= 2925 + 110 + 4 Multiply.

= 3039 Add.
S
Some historians
hi i say that
h
mayonnaise originated in There are 3039 calories in the recipe.
Bayonne, France, and was
originally called bayonnaise.
Checkpoint Help at

The total number of teaspoons in the mayonnaise recipe is given by the

expression below.

3 tsp in an 48 tsp
egg yolk Mustard in a cup Salt Sugar Vinegar Water

2(3) + 0.5 + 1.5(48) + 0.75 + 0.25 + 4.5 + 4

a. How many teaspoons are in the recipe?

b. How many calories are in a teaspoon of mayonnaise?

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4 Chapter 1 The Mathematics of Calculation

Calculators and Order of Operations

Some calculators use the standard order of operations and some do not. Rather
than relying on your calculator to perform the operations in the correct order, you
should use a calculator that has parentheses. Also, for this book, you will need a
calculator with an exponent key.

Recommended Calculator Keys

Exponent Divide
Study Tip
Here is an example of Parenthesis Multiply
the exponent key. There
are 123 cubic inches in Parenthesis Subtract
1 cubic foot.
Equals Add

Decimal point Negative

Using a Calculator
You are taking a 3-credit evening course. The cost is $150 for registration and
$219 for each credit. Which of the following keystroke sequences is better for
finding the total cost? Explain your reasoning.

a.

b.

SOLUTION
a. This sequence is better. You are forcing the calculator to multiply 3 by 219
before adding 150.
Total cost = 150 + 3(219)
= 150 + 657 Multiply.
= 807 Add.
The correct total cost is $807.
b. On some calculators, this keystroke sequence gives an incorrect total
because it adds 150 and 3 to get 153 and then multiplies by 219 to get a
total of $33,507, which is an unreasonable answer.

Checkpoint Help at

Your cell phone bills for 3 months are $50, $62, and $73. Which of the
following keystroke sequences is better for finding your average monthly
bill? Explain your reasoning.

c.

d.

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1.1 Order of Operations & Formulas 5

Using and Evaluating Formulas

A formula is an equation that relates one quantity to one or more other quantities.
For instance, the area of a rectangle is given by the formula
Area = (base)(height) or A = bh.

Common Area Formulas

Square: “side squared” Rectangle: “base times height”

A â s2 s A â bh h

Study Tip
Another formula for the s b
area of a rectangle is
“length times width.” Triangle: “one-half Circle: “pi times
A =ℓw base times height” radius squared”
r
h

A â 2 bh
1 A â Ĭ r2
Ĭ Ƽ 3.14
b

Buying Floor Tiles

You are buying tiles for your kitchen floor. The room is 8 feet by 12 feet. The
tiles are 12-inch squares that cost $8.97 each. The tiles come in boxes of 15.
You should order an extra 20 tiles to allow for waste.
a. How many boxes should you order?
12 in.
b. What is the total cost of your order?

SOLUTION
a. The area of the room is 8 × 12, or 96 square feet. So, you need 96 tiles plus an
12 iin. extra 20 tiles for waste. This is a total of 116 tiles. Because there are 15 tiles in
a box, you should order 8 boxes, giving you 120 tiles.
Ceramic tile has been around for
at least 4000 years. Tiled surfaces b. The total cost of your order is
have been found in the ruins of
Egypt, Babylon, and Greece. Number of tiles Cost per tile

120 × 8.97 = $1076.40.

Checkpoint Help at

You are buying tiles for 2 bathroom floors. One room is 8.5 square feet. The other
room is 9 feet by 10 feet. The tiles are 12-inch squares that cost $7.65 each. The
tiles come in boxes of 12. You should order an extra 20 tiles to allow for waste.
c. How many boxes should you order?
d. What is the total cost of your order?

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6 Chapter 1 The Mathematics of Calculation

Formulas for Distance, Rate, and Time

Distance = d Rate = r Time = t
d = rt d
r=— t=—
d
t r
Distance equals Rate equals distance Time equals distance
rate times time. divided by time. divided by rate.

.and .com
You can access a distance, rate, and time calculator at [Link].

Using the Distance Formula

Each morning, you run 7.5 miles in 45 minutes. You weigh 155 pounds.
How many calories do you burn running each morning?

Calories Burned During 1 Hour of Activity

Weight
Activity 130 lb 155 lb 190 lb
Bicycling, 12 mph 472 563 690
Billiards 148 176 216
Fishing from boat 148 176 216
Golfing 236 281 345
Running, 10 mph 944 1126 1380
Running, 8 mph 797 950 1165
Swimming laps 590 704 863
Volleyball at beach 472 563 690

SOLUTION
You are given the time and the distance. Your rate is given by
d
r=—
t
7.5 miles
=— Write 45 minutes as 0.75 hour.
0.75 hour
miles
= 10 —.
hour
3 3
Because 45 minutes is — of an hour, you burn — of 1126 calories.
4 4

Calories burned = 0.75(1126) = 844.5

So, you burn about 850 calories each morning.
According to the Centers for
Disease Control and Prevention, Checkpoint Help at
people who exercise regularly
lower their risk of heart disease, For lunch, you eat a third-pound hamburger with 590 calories, a medium cola with
stroke, and colon cancer. 210 calories, and a large order of French fries with 510 calories. How long do you
have to run at 10 miles per hour to burn the calories you eat at lunch?

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1.1 Order of Operations & Formulas 7

Formulas for Earnings, Rate, and Time

Earnings = E Rate = r Time = t
Study Tip E = rt E
r=— t=—
E
t r
Notice the similarity Earnings equal Rate equals earnings Time equals earnings
between these formulas rate times time. divided by time. divided by rate.
and the ones for distance,
rate, and time.
.and .com
You can access an earnings, rate, and time calculator at [Link].

Comparing Job Offers

Which job offer has the better total compensation? Explain your reasoning.
a.
Salary Rate: $30 per hour
401(k): 5% matching
Health Insurance: $600 per month

b.
Salary Rate: $59,000 per year
401(k): 6% matching
Health Insurance: $900 per month
Profit Sharing: $0–$20,000 per year

SOLUTION
a. There are 52 weeks in a year. At 40 hours a week, you work 2080 hours
in a year. Your yearly earnings are

( ) $
E = 30 — (2080 hr) = $62,400.
hr
5% of this is $3120 (see Section 1.3). So, your total compensation is
62,400 + 3120 + 12(600) = $72,720.
b. 6% of $59,000 is $3540 (see Section 1.3). Your total compensation is
59,000 + 3540 + 12(900) = $73,340.
So, even without profit sharing, this total compensation is better. If the
company has a profitable year, the total compensation could be much better.

Checkpoint Help at

c. You get a third job offer. How does it compare with the other two offers?

Salary Rate: $4800 per month

401(k): 4% matching
Health Insurance: $1200 per month
Sales Commission: $0–$3000 per month

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8 Chapter 1 The Mathematics of Calculation

1.1 Exercises
Equal-Payment Plan In Exercises 1 and 2, use the graph. (See Example 1.)

1 From
1. F October through August, on
Actual Monthly Gas Usage
an equal-payment plan, you pay $50
90
each month on your gas bill. How

$84.61
80
much do you owe in September?

$77.06
70

Cost (dollars)

$69.47
60

$62.83
50

$52.16

$49.16
2. You are on an equal-payment plan. 40

$42.58

$40.45
What is the least amount that you 30

$34.18
$29.54
$28.17

$26.87
can pay each month from October 20
through August to owe nothing 10
in September? 0

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep
Month

Equal-Payment Plan In Exercises 3 and 4, use the table. (See Example 1.)

Actual Monthly Electric Usage

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$84.02 $86.59 $77.65 $72.10 $68.26 $62.06 $63.47 $65.19 $60.12 $67.61 $75.36 $81.98

3. From January through November, on an equal-payment plan, you pay $75 each month on your
electric bill. How much do you owe in December?

4. You are on an equal-payment plan. What is the least amount that you can pay each month from
January through November to owe nothing in December?

Old-Fashioned Pink Lemonade 5. Pink Lemonade There are 774 calories in a cup of sugar,
65 calories in a cup of fresh lemon juice, and 137 calories
in a cup of cranberry juice. (See Example 2.)
* 1 1 2 cups white sugar
a. How many calories are in the old-fashioned
* 6 3 4 cups water pink lemonade recipe?
* 1 1 2 cups fresh lemon juice
b. This recipe makes nine servings. How many
* 3 4 cup cranber r y juice
calories are in one serving?

6. Fudge There are 99 calories in an ounce of cream cheese,

Homemade Fudge
12 calories in a teaspoon of vanilla extract, 389 calories in * 6 oz cream cheese, softened
a cup of powdered sugar, and 145 calories in a square of
* 1 8 tsp salt
chocolate. Salt has 0 calories. (See Example 2.)
* 1 2 tsp vanilla extract
a. How many calories are in the fudge recipe? * 4 cups powdered sugar, sifted
b. This recipe uses an 8-inch by 8-inch dish. How many * 4 squares unsweetened chocolate
calories are in a 1-inch by 1-inch piece of fudge?
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1.1 Order of Operations & Formulas 9

7. Parking You buy a campus parking permit for $250. During the year, you get four $15 parking
tickets. Which of the following keystroke sequences is better for finding your total parking cost?
Explain your reasoning. (See Example 3.)

a.

b.

8. Books Your books for this semester cost $95, $120, and $115. Which of the following keystroke
sequences is better for finding your average book cost? Explain your reasoning. (See Example 3.)

a.

b.

9. Pizza Party You buy 3 pizzas for $10 each and 5 bottles of cola for $2 each. Which of the
following keystroke sequences is better for finding the total cost? Explain your reasoning.
(See Example 3.)

a.

b.

10. Depreciation A new car worth $25,000 depreciates at a rate of 50% every 3 years. The value
of the car after 6 years is 25,000( 0.52 ). Which of the following keystroke sequences is better for
finding the value of the car? Explain your reasoning. (See Example 3.)

a.

b.

Football Field In Exercises 11 and 12, use the diagram of the football field. (See Example 4.)
11. You are buying lawn seed for the football field. A 10-pound
bag of lawn seed covers 2000 square feet.
360 ft
a. How many 10-pound bags of lawn seed
should you buy?
b. A 10-pound bag of lawn seed costs $27.79.
What is the total cost of your purchase? 160 ft

12. Latex paint is used to paint the end zones of the

football field. Each gallon of paint must be diluted
with 1 gallon of water. One gallon of diluted latex
paint covers 100 square feet.
a. Each end zone is 30 feet long. How many gallons of undiluted
latex paint are needed to paint both end zones?
b. Why do you think the paint is diluted?

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10 Chapter 1 The Mathematics of Calculation

Solar System In Exercises 13–16, use the table. The speed of light is 299,792 kilometers
per second. (See Examples 5 and 6.))

Mean Distance
Planet
from the Sun (km)
Mercury Earth
Mercury 57,909,175
Venus Mars
Venus 108,208,930 Uranus Neptune

Earth 149,597,890 Jupiter Saturn

Mars 227,936,640

Jupiter 778,412,020
Sun

Saturn 1,426,725,400
Saturn is the only planet in our Solar System that is less dense than water.
Uranus 2,870,972,200 It would float in a bathtub if you could build a bathtub big enough.
Neptune 4,498,252,900

13. How long does it take sunlight to reach Earth?

14. How long does it take sunlight to reach Neptune?

15. In the book Men Are from Mars, Women Are from Venus, the author John Gray
suggests that communication is a key component to successful relationships
among couples. Data transmission through space occurs at the speed of light.
How long would it take for a text message sent from Venus to reach Mars?

16. A meteor streaks through Jupiter’s atmosphere, causing a bright flash.

How long before the flash is seen from Earth?

17. Pluto From its discovery in 1930 to 2006, Pluto was

considered our Solar System’s ninth planet. In 2006,
Pluto was reclassified as a dwarf planet because of
its low mass and its similarity to other dwarf planets
beyond Neptune in the Kuiper Belt. To better
understand Pluto, NASA planned a mission to Pluto
called New Horizons. The spacecraft launched on
January 19, 2006, and is supposed to reach Pluto
9.5 years (83,220 hours) later after traveling about
3 billion miles. What is the average speed of the
spacecraft in miles per hour? (See Example 5.)

18. Light-Year What is a light-year? How is the term

light-year used?

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1.1 Order of Operations & Formulas 11

Extending Concepts
19. Equal-Payment Plan From Actual Monthly Electric Usage
May through March, on an 100
equal-payment plan, you pay $90 90

$90.83
$88.24
$87.73
each month on your electric bill. 80

Cost (dollars)

$83.65
$82.36
$79.12

$78.84
$78.43
70

$77.06
$75.29
$74.91
$72.05
a. How much do you owe in April? 60
50
b. Interpret your answer to part (a). 40
30
c. What should you pay each 20
month to have 12 equal 10
0
monthly payments?

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr
Month
20. Ink Cartridge A combo pack has
23 ink cartridges. A shipment has 62
combo packs. Which of the following keystroke sequences is better for finding
the total number of ink cartridges in a shipment? Explain your reasoning.

a.

b.

21. Hot Tub The inside of a circular hot tub is lined

with 1-inch by 1-inch tiles.
a. Explain how to estimate the number of tiles
needed for the hot tub.
3.5 ft b. The hot tub is 3.5 feet deep and has a diameter
of 6 feet. What is the minimum number of tiles
needed? (The formula for the circumference of
a circle is C = πd.)

6 ft

Job Offers In Exercises 22–24, use the job offers shown.

Offer A Offer B
Salary Rate: $3200 per month Salary Rate: $25 per hour
401(k): 3% matching 401(k): 5% matching
Health Insurance: $850 per month Health Insurance: $650 per month
Sales Commission: $0–2500 per month Profit Sharing: $0–15,000 per year

22. What are the minimum and maximum yearly total compensations for each job offer?

23. Which job offer do you think is better? Explain your reasoning.

24. You decide to make a counteroffer to the company you did not choose in Exercise 23.
How does your counteroffer differ from the original? Explain your reasoning.
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12 Chapter 1 The Mathematics of Calculation

1.2 Rounding & Calculators

Round numbers in a real-life context.
Read large and small numbers.
Understand the concept of “garbage in, garbage out.”

Rounding Numbers in a Real-Life Context

People tend to think that mathematics gives exact answers. In a real-life context,
however, listing “exact” calculator displays is often unreasonable. It is usually
reasonable to round the calculator display according to the context of the
real-life application.

Rounding Numbers
Determine your rounding digit and look at the digit to the right of it.
1. Rounding Down: If the digit is 0, 1, 2, 3, or 4, do not change the
rounding digit. All digits to the right of the rounding digit become 0.
2. Rounding Up: If the digit is 5, 6, 7, 8, or 9, add 1 to the rounding digit.
All digits to the right of the rounding digit become 0.

Rounding Numbers in Context

Round the defense spending per person for each country so it is reasonable for
the context.

2010 U.S. Defense 2010 population

Department budget of United States

$660 billion
a. — ≈ $2129.03226 per person
310 million
Top FFive Countries for
Defense Spending in 2010 2010 China’s Defense 2010 population
Department budget of China
700
Amount (billions of dollars)

600 $100 billion

b. — ≈ $74.62687 per person
1.340 billion
500
SOLUTION
400
None of the numbers given in the problem are exact. So, rounding is reasonable.
300
a. A reasonable answer is that defense spending in the United States is about
200 $2130 per person.

100 b. A reasonable answer is that defense spending in China is about

$75 per person.
0
U.S.
China
U.K.
France
Russia

Checkpoint Help at

Country In 2010, the population of the United Kingdom was about 62 million. Estimate its
defense spending per person.
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1.2 Rounding & Calculators 13

Comparing Annual Fuel Cost

Assume that you drive 15,000 miles in a year. Use the information given to
estimate the annual fuel cost based on a fuel price of $2.68 per gallon for
87 octane and $2.92 per
gallon for 93 octane.

a. 2011 Toyota Prius b. 2011 Infiniti EX35

Miles on a Tank* 536 miles 360 miles
Tank Size 11.9 gal 20.0 gal
Recommended Octane 87 93
* Based on 45% highway and 55% city driving.

SOLUTION
a. This car can travel 536 miles on a tank of gas. To drive 15,000 miles,
you need the following number of tanks.
15,000 miles
—— ≈ 27.985 tanks See page 34.
536 miles per tank

Study Tip Each tank contains 11.9 gallons, so the number of gallons you use is

( )
Notice that listing the units, gallons
(27.985 tanks) 11.9 — = 333.0215 gallons.
such as gallons per tank, tank
helps determine the units
At $2.68 per gallon, your annual fuel cost is
of the answer.

( )
dollars
(333.0215 gallons) 2.68 — = $892.49762.
gallon
Your annual fuel cost is about $900. In the context of the question, it is
misleading to specify an annual cost of $892.50. This would lead your
reader to believe that you know more about the context than you do.
b. This car can travel 360 miles on a tank of gas. To drive 15,000 miles,
you need the following number of tanks.
15,000 miles
The United States uses about —— ≈ 41.667 tanks See page 34.
360 miles per tank
140 billion gallons of gasoline in a
year. Many countries place high Each tank contains 20 gallons, so the number of gallons you use is
taxes on gasoline. Some people
( )
gallons
(41.667 tanks) 20 — = 833.34 gallons.
have suggested a tax of at least tank
$1 per gallon in the United States.
At $2.92 per gallon, your annual fuel cost is

( )
dollars
(833.34 gallons) 2.92 — = $2433.3528.
gallon
Your annual fuel cost is about $2400 or $2500.

Checkpoint Help at

How many miles per gallon does each car get?

c. A 2011 Toyota Prius d. A 2011 Infiniti EX35
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14 Chapter 1 The Mathematics of Calculation

Reading Large and Small Numbers

When numbers are too large or too small to be conveniently written in standard
decimal notation, most calculators switch to scientific or exponential notation.

Study Tip Exponential Notation

The integer b tells you how
In exponential notation, numbers are written as a times a power of 10,
many places to move the
decimal point in the a × 10b
number a.
where a is at least 1 and less than 10, and b is an integer. Here are two examples.
Positive exponent:
Move right Standard Decimal Notation Exponential Notation
5.1 × 108 = 510000000. 6,830,000,000 6.83 × 109
0.0000000000683 6.83 × 10−11
Negative exponent:
Move left
2.4 × 10−8 = 0.000000024
Describing Large and Small Numbers
Describe the numbers in the article about bacteria.

It is estimated that 500 to 1000 species of

bacteria live in the human digestive system
and a roughly similar number live on the skin.
Bacteria cells are much smaller than human
cells (typically 3 × 10−6 meter in length),
and there are at least 10 times as many
bacteria as human cells in the body
( approximately 1014 versus 1013 ). There are
approximately 5 × 10 bacteria on Earth.
30

SOLUTION
Length of a bacteria cell:
3 × 10−6 meter = 0.000003 meter 3 millionths
Number of bacteria in a human:
1014 bacteria = 100,000,000,000,000 bacteria 100 trillion
Number of human cells in a human:
1013 cells = 10,000,000,000,000 cells 10 trillion
Number of bacteria on Earth:
5 × 1030 bacteria
= 5,000,000,000,000,000,000,000,000,000,000 bacteria

Checkpoint Help at

The diameter of a virus is less than 3 × 10−8 meter. Write this number in standard
decimal notation and describe it in words. Which is larger, a bacteria or a virus?

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1.2 Rounding & Calculators 15

Comparing Hard Drive Storage

You are buying a computer. For an additional $80, you can get 1 terabyte of
storage instead of 100 gigabytes of storage.
a. How much more storage is that?
b. A typical movie uses 1 gigabyte of storage. How many movies could you
store with 1 terabyte of storage?

Computer Storage
1 megabyte = 106 bytes
1 gigabyte = 109 bytes
1 terabyte = 1012 bytes
1 petabyte = 1015 bytes
1 exabyte = 1018 bytes
1 zettabyte = 1021 bytes
1 yottabyte = 1024 bytes
1 brontobyte = 1027 bytes
1 geopbyte = 1030 bytes

SOLUTION
OLUTION
a. 100 gigabytes of storage is
100 × 109 = 100,000,000,000 bytes. 100 billion bytes
1 terabyte of storage is
1012 = 1,000,000,000,000 bytes. 1 trillion bytes
1 trillion is 10 times more than 100 billion. So, the additional
$80 will give you 10 times the amount of storage.
b. A terabyte is 1000 gigabytes. So, you could store
about 1000 movies with 1 terabyte of storage.

Checkpoint Help at

Use the information in the paragraph below to find the storage of an Apple iPad.

Hello Zettabytes
The so-called digital universe has grown
to 800,000 petabytes, or 0.8 zettabyte. A
petabyte is a million gigabytes. That is
equivalent to all the information that can
be stored on 50 billion Apple iPads.

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16 Chapter 1 The Mathematics of Calculation

Understanding Garbage In, Garbage Out

Humans tend to have unwarranted faith in numbers that are generated by
calculators or by computers. When stating a number as an answer to a question,
you should remember that the accuracy of the output is only as good as the
accuracy of the input.

Study Tip Significant Digit Rule

The best way to communicate A general rule for writing numbers is to not list more significant digits in the
measurements is to tell the output than you can guarantee in the input.
reader how you obtained
your numbers and to give Examples: The number 1.26 has 3 significant digits. The number 0.034 has
some indication of the 2 significant digits. The number 25,400 has 3 significant digits.
accuracy of the measurements.

Estimating the Accuracy of Measurements

Rewrite each statement using the number of significant digits that seems
appropriate in the context of the statement. Explain your reasoning.
a. In 2009, the population of Florida was 18,537,969 people.
b. The total amount of a loan is $3,546.28.
c. The area of an apartment is 1891 square feet.

SOLUTION
a. Taking a population census of a large region has many difficulties.
Moreover, with 2009 being 9 years after an official census, this
statement would be better phrased as, “In 2009, the population of Florida
was about 18.5 million people.” This number has 3 significant digits.
b. It is fair to assume that numbers dealing with banking or payroll are
exact. So, this statement can remain as it is. All of the digits are significant.
c. Without knowing who is making this statement, it is difficult to
determine the accuracy. Even so, specifying the area of an apartment
exactly within 1 square foot seems unrealistic. Suppose the apartment
was measured to be a rectangle that is 31 feet by 61 feet. This would
yield an area of 31 × 61 = 1891 square feet. If the measurements were
off by only 0.1 foot, the actual area could range between
30.9 × 60.9 = 1881.81 and 31.1 × 61.1 = 1900.21.
It would be better to say that the area of the apartment is about
1900 square feet. This number has 2 significant digits.

Checkpoint Help at

Rewrite each statement using the number of significant digits that seems
appropriate in the context of the statement. Explain your reasoning.

d. The weight of an athlete is 213.6 pounds.

e. The record time for a 100-meter dash is 9.58 seconds.
f. The distance between Earth and the Sun is 92,955,819 miles.
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1.2 Rounding & Calculators 17

Writing Significant Digits

Here is a description of the Vietnam Veterans Memorial in Washington, D.C.

The Wall consists of the East Wall and the West Wall. The triangular walls are
each 246.75 feet long and 10.1 feet tall where they meet at a 125-degree angle.
The West Wall points to the Lincoln Memorial, and the East Wall points to the
Washington Monument. Each Wall consists of 72 panels: 70 with names and
2 very small, blank panels at each end. There are 58,267 names listed on the
Memorial. Approximately 1200 of these names are listed as missing.

Use the information in this description to estimate (a) the area of the Wall and
(b) the size of the lettering used on the Wall. In each case, write your answer with
only as many significant digits as you think are reasonable.

SOLUTION
a. Find the area of each triangle.
1
Area of each triangle = — bh
2
Base = 246.75 ft
= 0.5(246.75)(10.1)
Height = 10.1 ft
= 1246.0875 ft2

Doubling this amount gives a total of 2492.175 square feet. Because the height
is given with only 3 significant digits, it is best to round the answer to the same.
So, the most accurate you can be with the given description is to say that the
Wall has an area of about 2490 square feet.

b. Using an area of 2490 square feet, the average area per name is
58,267 names
——
2 ≈ 23.4 names per square foot.
2490 ft
A square foot contains 144 square inches. So, you would have at most
6 square inches of space to carve each name. One reasonable solution is that
the letters might be 1/2 inch high. This would leave 12 inches for the length
of each name.

Checkpoint Help at

Suppose you were planning the Wall. You want to list each name as
First Name Middle Initial Last Name.
How could you estimate the average number of characters used in the names?
What is your estimate?

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18 Chapter 1 The Mathematics of Calculation

1.2 Exercises
Electricity Consumption In Exercises 1– 4,
use
u the graph. Round your answer so it is Top Six Countries for Electricity
reasonable
rea for the context. (See Example 1.) Consumption in 2008

(billions of kilowatt-hours)
4500

Electricity consumption
1. Estimate the electricity consumption 4000
of the United States. 3500
3000
2. Estimate the total electricity consumption 2500
of Japan, Russia, India, and Canada. Is it 2000

greater than or less than the electricity 1500

1000
consumption of the United States?
500
0
United China Japan Russia India Canada
3. In 2008, the population of the United States
States
was about 304 million. Estimate the amount
Country
of electricity consumed per person.

4. In 2008, the population of Canada was about 33 million. Estimate the

amount of electricity consumed per person. Which country consumed
more electricity per person, Canada or the United States?

Refrigerator Costs Two refrigerator models and their annual electricity

consumptions are shown. In Exercises 5– 8, assume the price of electricity
is $0.1202 per kilowatt-hour (kWh). (See Example 2.)
5. You are buying a refrigerator.
a. Estimate the annual electricity cost of each model.
b. How much will you save in electric bills each year by buying
the top-freezer model instead of the side-by-side model?

6. A top-freezer model with an ice dispenser

consumes 90 kilowatt-hours per year more
than the standard top-freezer model.
a. Estimate the annual electricity cost of the Top-freezer refrigerator
top-freezer model with the ice dispenser. 529 kWh/yr
b. How much does the ice dispenser add to the annual
electricity cost of the top-freezer model?

7. Your current refrigerator consumes 700 kilowatt-hours per year and should
last about 7 more years.
a. How much will your current refrigerator cost you over the next 7 years?
b. How much will the top-freezer model cost you over the same time period?
c. You buy the top-freezer model for $549.99. Will the difference in electricity
costs over the next 7 years cover the price of the new refrigerator? Explain.
id b id refrigerator
Side-by-side fi
634 kWh/yr 8. You own the top-freezer model. Suppose the price of electricity decreases
to $0.12 per kilowatt-hour. How much will you save in electric bills each year?

Copyright © Larson Texts, Inc. All rights reserved.

1.2 Rounding & Calculators 19

Plankton In Exercises 9 and 10, write the length of the plankton in exponential
notation. Then use the chart to classify the plankton. (See Examples 3 and 4.)

Classes of Plankton

Femto-

Pico-

Nano-
Class

Micro-

Meso-

Macro-

Mega-
The term plankton comes
2.0 ñ 10Ź7

2.0 ñ 10Ź6

2.0 ñ 10Ź5

2.0 ñ 10Ź4

2.0 ñ 10Ź3

2.0 ñ 10Ź2

2.0 ñ 10Ź1
from the Greek word
planktos, which means
“drifter.”
Length (meters)

9. Copepod: 0.0012 meter 10. Golden algae: 0.0000091 meter

11. Marine Virus Marinee viruses

viruse are a type of plankton. The length of a
ss than 2.0 × 10−7
marine virus is less −7
meter. Write this number in standard
decimal notation and
annd describe it in words. Use the chart above
to classify the virus.
s.. (See Examples 3 and 4.)

12. Blue Whale A blue whale

w eats about 5000 pounds
of plankton per day during
ur
uring a 120-day feeding
period. How many pounds
unnds of plankton
does the whale eat in one
ne feeding
period? Write your answer
we in
wer
standard decimal notationn and
in exponential notation.
(See Examples 3 and 4.)
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20 Chapter 1 The Mathematics of Calculation

Significant Digits In Exercises 13 –16, rewrite each statement using the number of
significant digits that seems appropriate in the context of the statement. Explain your
reasoning. (See Example 5.)
13. In 2009, the population of Texas was 24,782,302 people. 14. The price of a house is $239,900.

15. The weight of a bag of sugar is 5.01 pounds. 16. The number of calories in a sandwich is 297.

Home Improvement In Exercises 17 and 18, use the floor plan. Write your answer with
only as many significant digits as you think are reasonable. (See Example 6.)

16.5 ft

Closet
Utility
Living Room Room Bedroom
18 ft

14.5 ft
2.5 ft 8 ft Bathroom
Foyer
Dining 12.5 ft
Room Kitchen

Garage

17. You are carpeting the living room.

a. How many square feet of carpet should
you buy?
b. The cost of the carpet including installation
is $3.49 per square foot. How much does it
cost to carpet the living room?

18. You are replacing the linoleum in

the kitchen.
a. How many square feet of linoleum
should you buy? Should you include
the area of the two counters in your
estimate? Explain.
b. The cost of the linoleum including installation
is $1.25 per square foot. How much does it cost
to replace the linoleum in the kitchen?

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1.2 Rounding & Calculators 21

Extending Concepts
Grocery Bill In Exercises 19 and 20, use rounding to decide whether the total is reasonable.
Explain your reasoning.
19. 20.

Maps In Exercises 21–25, use a ruler and the scale on the map of Wyoming.
21. Estimate the distance
212
90
from Cheyenne to YELLOWSTONE Powell Sheridan
Gillette. NATIONAL PARK 310

14 20 Sundance
Cody Buffalo
Yellowstone
22. You are planning a 90 Gillette
n R

89 Lake 16
or

trip from Riverton to Jackson

gh

120
Worland
Bi

Lake
Gillette. You want to GRAND TETON 20 Wright Newcastle
stop in Douglas along NATIONAL PARK Thermopolis 387
the way. Estimate Jackson 287 W
in
d
R
the total distance of 191 25 85
the trip. 59

Pinedale Riverton Casper

Lander Lusk
Afton 20
Douglas
23. Your car can travel 89
ater 287 R
274 miles on a tank S w eetw

of gas. Each tank 191 26

contains 12.7 gallons. G Wheatland

Medicine Bow
re

Estimate the fuel Rawlins

en

30
287
cost for a trip from
R

Green River 80
25
189 85
Laramie to Evanston. Rock Springs 789
Use a gas price of Laramie Cheyenne
Evanston Flaming Gorge
$2.92 per gallon. Reservoir 0 40 mi 80

24. Estimate the area of the portion of Yellowstone National Park that is in Wyoming.

25. Describe different ways to find the distance between two cities.

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22 Chapter 1 The Mathematics of Calculation

1.1–1.2 Quiz

Patio You are expanding a patio as shown. In Exercises 1 and 2, 6 ft 4 ft

use the diagram.
1. Which of the following keystroke sequences is better for finding
Patio 8 ft
the area that you are adding to the patio? Explain your reasoning.

a.

b. 6 ft

2. You are laying 1-foot by 1-foot tiles. You estimate that it will take you 1 hour to lay
45 tiles. Estimate how long it will take you to tile the area that you are adding to the patio.

Population Density In Exercises 3–6, use the information given in the table.
3. Population density is the number of people
per unit of area.
a. Use the total area of Canada to estimate the
country’s population density.
Yukon
b. Land area is equal to total area minus water
Northwest
area. Use the land area of Canada to estimate Territories Nunavut
the country’s population density. British
Columbia
Newfoundland
c. Do you think population density should and
Alberta
be defined in terms of the total area of Labrador

a country or in terms of the land area? Manitoba

Explain your reasoning. Quebec

P.E.I.
Ontario

4. Excluding Canada’s three northern territories, Saskatchewan

ple,
the population of Canada is about 34.0 million people, New Nova
uare kilometers.
and the land area of Canada is about 5.5 million square Brunswick Scotia

a. Estimate the population density of Canada,

excluding the three northern territories.
b. How does excluding the territories change your estimate of
the population density? Explain your reasoning.

5. The population of Toronto is about 2.5 million people, and Canada

the land area of Toronto is about 630 square kilometers.
Population (2010) 34,108,800
a. Estimate the population density of Toronto.
Total area 9,984,670 km2
b. How does your estimate for Toronto compare to
your estimates for Canada? Water area 891,163 km2

6. Do you think that population density is an accurate measure

of a country’s population distribution? Explain your reasoning.

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Chapter 1 Project Math & Lunar Eclipses 23

Math & Lunar Eclipses

PROJECT: Finding Patterns in Nature

Tot
Cross section
al E of penumbra
Par clip
tial se
Ecli
pse

1. Use the Lunar Eclipse Computer* at [Link] Cross section

to find information about the next total eclipse of the of umbra
moon in your area.

Sun

Begin by entering your location information in the calculator.

Then, press “Get Data” to obtain the information, as shown below.

2. How long does a total lunar eclipse last?

3. How often does a total lunar eclipse occur? Explain your reasoning.

4. How has the time between lunar eclipses or between full moons influenced life
on Earth? Include a discussion of tides, folklore, calendars, literature, and language.

*Provided by U.S. Naval Observatory

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24 Chapter 1 The Mathematics of Calculation

1.3 Using Percent

Understand and find a percent of a number.
Determine what percent one number is of another number.
Use percent to represent change.

Finding a Percent of a Number

parts
“Cent” implies 100, as in the
25
word century. A percent is 25% = 0.25 = — per
the number of parts per 100
one hundred. one hundred

Finding a Percent of a Number

Study Tip To find a percent of a number, 25% of 60
To rewrite a percent as a write the percent as a decimal
decimal, move the decimal and multiply by the number.
point 2 places to the left.
Example: 25% of 60
25% = 0.25
0.25 × 60 = 15

Finding a Percent of a Number

The map shows the percent
Percent of Land of land in each state that WA NH
Owned by the is owned by the federal 30.3% MT
29.9%
ND
VT 13.4% ME
7.5% 1.1%
2.7% MN
OR
Federal Government government. The land 53.1% ID
5.6%
NY
MA
1.9%
SD WI WV
50.2% MI 0.8%

1. Nevada 84.5% area of Nevada is WY

42.3%
6.2% 5.6%
10.0%
7.4%
PA
RI 0.4%
IA CT 0.4%
NV NE 2.5%
109,826 square miles. 84.5% UT 1.4%
0.8%
IL IN
OH NJ 3.1%
2. Alaska 69.1% CA 57.5% CO 1.8% 2.0%
1.7% DE 2.0%
How many square miles 45.3% 36.6% KS
1.2% MO KY
VA
9.9% MD
3. Utah 57.5% of Nevada are owned by
5.0% 5.4%
NC
11.8%
2.8%

AZ OK TN 3.2%
NM SC
4. Oregon 53.1% the federal government? 48.1%
41.8%
3.6% AR
7.2%
2.9%
MS AL GA
5. Idaho 50.2% AK
TX
1.9% LA
7.3% 1.6% 3.8%

69.1% 5.1%
6. Arizona 48.1% FL
8.2%
HI
7. California 45.3% 19.4%
SOLUTION
8. Wyoming 42.3%
9. New Mexico 41.8% Write 84.5% as a decimal.
10. Colorado 36.6% 0.845 × 109,826 = 92,802.97
The federal government owns about 92,800 square miles of Nevada.

Checkpoint Help at

The land area of Alaska is 571,951 square miles. How many square miles of
Alaska are owned by the federal government? Does the federal government own
more land in Alaska or in Nevada?

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1.3 Using Percent 25

Finding Percents
Dog Ownership
There are about 117 million in U.S. Households
households in the United States.
Use the circle graph (also 3.5%
called a pie chart or pie 3 or more dogs
graph) to estimate the
number of pet dogs 9.4%
61%
2 dogs
in the United States. No dogs

SOLUTION 26.1%
1 dog
Problems like this, with repetitive
steps and sums of large numbers,
lend themselves well to spreadsheets.

117,000,000 ñ 0.094 ñ 2 â 21,996,000

A B C D
1 Number
2 Households of Dogs Percent Dogs
3 117,000,000 0 61.0% 0
4 117,000,000 1 26.1% 30,537,000
5 117,000,000 2 9.4% 21,996,000
6 117,000,000 5 3.5% 20,475,000
7 100.0% 73,008,000
8
9

Total percent Total number

of dogs

Notice that we assumed that households with 3 or more dogs have an average
of 5 dogs. This assumption affects the final answer. With this assumption and
with the context of the problem, you cannot assume much accuracy in the
answer. Perhaps an answer of “about 70 million dogs” is reasonable.

Checkpoint Help at

Cat Ownership
There are about 117 million households in U.S. Households
in the United States. Thirty-three percentt
of the households own at least one cat.
On average, these households have
2.45 cats. Estimate the number of pet
cats in the United States. 67%
No cats
33%
At least
one cat

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26 Chapter 1 The Mathematics of Calculation

Using Percent to Compare Two Numbers

Comparing Two Numbers Using Percent

T find what percent a part
To 1
iis of a base, divide the 16 is 20% or 5
of 80
ppart by the base.
E
Example:

Part
16
— = 0.2 = 20%
80
Base

Comparing
mparing Two Numbers Using Percent
The number of tiles of each ch
letter in SCRABBLE depends ends
on the language. There aree
100 letters in the traditional
al
version of SCRABBLE. The
distribution of the letters inn
the English version is shown wn
at the right. In this version,
n,
what percent of the letters
are vowels?

SOLUTION
There are 9 A’s, 12 E’s, 9 I’s, 8 O’s, and 4 U’s. That is a total of 42 vowels.

Part
42 letters
— = 0.42 = 42%
100 letters
Base

42% of the tiles in the English version of SCRABBLE are vowels.

Checkpoint Help at

The Spanish version of SCRABBLE has the following tiles.

2 blank tiles, 11 A’s, 3 B’s, 4 C’s, 4 D’s, 11 E’s, 2 F’s, 2 G’s, 2 H’s,
6 I’s, 2 J’s, 1 K, 4 L’s, 1 LL, 3 M’s, 5 N’s, 1 Ñ, 8 O’s, 2 P’s, 1 Q,
4 R’s, 1 RR, 7 S’s, 4 T’s, 6 U’s, 2 V’s, 1 W, 1 X, 1 Y, and 1 Z
What percent of these tiles are vowels?

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1.3 Using Percent 27

Comparing Two Numbers Using Percent

A person’s body fat percentage
is the weight of the person’s fat Description Women Men
divided by the person’s weight. Athletes 14–20% 6–13%
The following ideal body fat
Fitness 21–24% 14–17%
percentages are from the
American Council on Exercise. Average 25–31% 18–24%
Obese 32%+ 25%+
Find the body fat percentage
for the following people.
a. A man who weighs 210 pounds with 44 pounds of fat
b. A woman who weighs 145 pounds with 38 pounds of fat

SOLUTION
a. A man who weighs 210 pounds with 44 pounds of fat:

Fat weight
Study Tip 44 lb
— ≈ 0.2095 ≈ 20.1%
210 lb
When you find a percent by Total weight
dividing, the numerator and
the denominator should have The man’s body fat percentage is about 20%.
the same units.
b. A woman who weighs 145 pounds with 38 pounds of fat:

Fat weight
38 lb
— ≈ 0.2621 ≈ 26.2%
145 lb
Total weight

The woman’s body fat percentage is about 26%.

Checkpoint Help at

The circle graph represents a typical 180-pound man. Find the percent of
each type of material.

Oth
Other: Water: 111 lb
12 lb

Fat: 27 lb

Protein: 30 lb

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28 Chapter 1 The Mathematics of Calculation

Using Percent to Represent Change

In the first four examples of this section, percent is used to represent a part
of a whole.

Study Tip Example 1: Federally owned land is part of the total state land.
In this section, we will Example 2: Households with dogs are part of all households.
only look at quantities
that increase over time. In Example 3: Tiles with vowels are part of all tiles in SCRABBLE.
Chapter 4, we will look at Example 4: Fat weight is part of the total weight of a person.
quantities that increase or
decrease over time. The last two examples in this section look at another common use of
percent —that is, to describe the amount that a quantity changes over time.

Using Percent to Describe an Increase

Reword the statement so it uses a percent that is greater than 100%.
Life expectancy at birth in the United States in 1901 was 49 years.
At the end of the century, it was 77 years, an increase of more than 50%.

SOLUTION
Compare 77 years to 49 years using division.

Increased amount
77 years
— ≈ 1.57 = 157%
Original amount 49 years

So, one way to rephrase the statement is as follows.

Life expectancy at birth in the United States in 1901 was 49 years. The life
expectancy of 77 years in 2000 was 157% of the 1901 life expectancy.

Checkpoint Help at

Use the line graph to write two paragraphs describing the change in
women’s life expectancy at birth from 1900 to 2000.
a. In the first paragraph, describe the change in life expectancy.
b. In the second paragraph, compare the newer life expectancy to the older one.

Life Expectancy at Birth in the United States (1900–2000)

90
Women at birth
80
70
60
Men at birth
Age

50
40
30
20
10
0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Year

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1.3 Using Percent 29

Using Percent to Describe an Increase

The line graph shows the daily high price of gold per ounce. Use the graph
to describe the change in the high price of gold (a) from 1980 to 2010 and
(b) from 2000 to 2010.

High Price of Ounce of Gold (1972–2010)

1500
1350
1200
1050

Price (dollars)
900
750
600
450
300
150
0
1975 1980 1985 1990 1995 2000 2005 2010
Year

SOLUTION
a. Suppose you bought gold in 1980 for $800 per ounce and sold it in
2010 for $1200 per ounce.
2010 price
$1200
— = 1.5 = 150%
1980 price $800

The 2010 price was 150% of the 1980 price. Another way of saying
this is that your investment increased by 50%.
b. Suppose you bought gold in 2000 for $250 per ounce and sold it
in 2010 for $1250 per ounce.

2010 price
$1250
— = 5.0 = 500%
65.5 ft 2000 price $250

The 2010 price was 500% of the 2000 price. Another way of saying
this is that your investment increased by 400%. Be sure you see that the
65.5 ft 65.5 ft
500% is a result of comparing the two prices. If you compare only the
increase in price to the original price, you obtain 400%.
All the gold that has been mined in
human history would fit into a cube Price increase
that is 65.5 feet on each side. $1000
— = 4.0 = 400%
2000 price $250

Checkpoint Help at

Use the graph to describe the change in the high price of gold from 1975 to 2010.

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30 Chapter 1 The Mathematics of Calculation

1.3 Exercises
Stem Cell Research The bar graph shows the results of a poll of adult Americans
about federal government funding of stem cell research. In Exercises 1–4, use the
bar graph. (See Example 1.)

Federal Government Funding of Stem Cell Research

70%
Total
60% 58%
55% Men
52%
50% Women
44%
41% 39%
40%

30%

20%

10%
4% 3% 4%
0%
Should fund Should not fund No opinion

1. There are about 117,000,000 adult American men. About how many of these men
think the federal government should fund stem cell research?

2. There are about 123,000,000 adult American women. About how many of these
women think the federal government should fund stem cell research?

3. Describe two ways to find how many American adults have no opinion about
federal government funding of stem cell research. Do both ways result in the
same answer? Explain.

4. Are the results for men significantly different than the results for women? Explain.

Stem Cell Research The circle graph shows the results of a poll of adult Americans
about the moral acceptability of stem cell research. In Exercises 5–8, use the
circle graph. (See Example 2.)
Stem Cell Research
5. In a city, 412,230 adults think that stem cell research is
morally wrong. Estimate the population of the city.
32%
Morally
6. How many adults from the city in Exercise 5 think stem wrong
cell research is morally acceptable? 9%
No opinion
7. Conduct a poll on stem cell research by asking at least
30 people for their opinion. Compare your results to the 59%
bar graph above and the circle graph. Morally
acceptable
8. Summarize the results of your poll in Exercise 7
graphically. Explain your choice of graph.

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1.3 Using Percent 31

Skeletal System In Exercises 9–14, use the information below. (See Examples 3 and 4.)

The stapes (pronounced stay-peas)

bone is the smallest bone in
Bones in the Human Body
the body. It is sometimes
called the stirrup bone g)EADp g5RUNKp

because of its shape.
g)ANDSp g'EETp
It is located in the
g8RISTSp g"NKLESp
middle ear and is
about the size of g4HOULDERSANDARMSp
a grain of rice. g)IPSANDLEGSp

9. Of the hand bones, 28 are finger bones

(14 phalanges in each hand). What percent of
the hand bones are finger bones?

Distal phalanges

Intermediate phalanges

Proximal phalanges

Metacarpals

Carpals

10. Of the head bones, 14 are facial bones. What percent of the head bones
are facial bones?

11. What percent of the bones in the human body are in the hips and legs?

12. What percent of the bones in the human body are in the trunk?

13. The skeletal system is a complex work of nature, with the hands and
feet being the most intricate. What percent of the bones are in the hands,
wrists, feet, and ankles?

14. The longest bone in the body is the thigh bone (femur). The average
adult male has a femur that is 48 centimeters long. Use estimation and
percent to compare the length of the stapes to the length of the femur
in an average adult male.

15. Skeleton The skeleton of a 160-pound man weighs about 30 pounds.

What percent of the man’s weight is his skeleton? (See Examples 3
and 4.)

16. Weight Gain The man in Exercise 15 gains 30 pounds. What percent
of the man’s new weight is his skeleton? (See Examples 3 and 4.)
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32 Chapter 1 The Mathematics of Calculation

Diamond Rings The graph shows the price ranges for five weights of diamond rings at a
jewelry store. In Exercises 17–24, use the graph. (See Examples 5 and 6.)

Diamond Rings

30,000

25,000
$13,304
20,000
Price (dollars)

15,000

$9200
10,000

5,000 $1055 $4866

$971

0
0.30 0.50 1.00 2.00 3.00
Weight (carats)

17. The jewelry store has a diamond ring listed at $11,499. What is the carat weight of
the diamond ring? Explain your reasoning.

18. What is the price range of a 1.00-carat diamond ring?

19. How much more does a 2.00-carat diamond ring cost than a 1.00-carat diamond ring?

20. Reword the statement so that it uses a percent that is greater than 200%.

an the
A 0.50-carat diamond ring costs $2026, which is about 108.7% more than
cost of a 0.30-carat diamond ring.

21. Is it true that a 0.50-carat diamond is more than 60% larger than a 0.30-carat
carat diamond?
Explain your reasoning.

22. Use percent to describe the change in maximum price.

a. from a 0.50-carat diamond ring to a 1.00-carat diamond ring
b. from a 1.00-carat diamond ring to a 2.00-carat diamond ring
c. from a 2.00-carat diamond ring to a 3.00-carat diamond ring

23. Use percent to describe the change in carat weight.

a. from a 0.50-carat diamond ring to a 1.00-carat diamond ring
b. from a 1.00-carat diamond ring to a 2.00-carat diamond ring
c. from a 2.00-carat diamond ring to a 3.00-carat diamond ring

amond ring.
24. Describe the relationship between the carat weight and the price of a diamond ring

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1.3 Using Percent 33

Extending Concepts
True or False In Exercises 25–28, decide whether the statement is true or false.
Explain your reasoning.
25. You invest $1250 in the stock market and lose 20% during the first year. To get back to
your original investment, your portfolio needs to gain 20% during the second year.

26. At work, you receive a cost-of-living adjustment (COLA) of 3%

each year. Over a 5-year period, your pay will increase by 15%.

27. Your property taxes increase by 5% one year and decrease by

1% the next year. Overall, your property taxes are up by 4%
over 2 years.

28. Everything in a store is on sale for 40% off. You

have a coupon for 10% off the purchase price.
When you go to the counter to pay, you will The cost of living is the cost of maintaining a certain standard
receive 50% off the original price. of living. It is usually tied to a cost-of-living index such as the
consumer price index (CPI).

29. Savings Account You open a savings account that has a 2.0% simple annual interest rate.
At the end of the first year, you have earned $30 in interest. No other transactions were
posted to the account. What is the balance of the account at the end of the first year?

30. Political Platform As part of a political platform, a politician promises to cut spending
by 110%. Is this possible? Explain your reasoning.

31. Test Scores Four exams are used to determine your final grade in one of
your classes. The bar graph shows your scores on the first three exams.
What percent do you need on the last exam to receive an 85%
in the class?

Test Scores
100
90
80 88%
Percent correct

84%
70 76%
60
50
40 ?
30
20
10
0
Test 1 Test 2 Test 3 Test 4

32. Profit Sharing Your company currently allocates 5% of the company profits each year to a
profit sharing plan for the employees. The board of directors decides to increase the amount
allocated by 10%. Does this mean the new policy is to allocate 5.5% or 15% to the profit
sharing plan each year? Explain your reasoning.

Copyright © Larson Texts, Inc. All rights reserved.

34 Chapter 1 The Mathematics of Calculation

1.4 Units & Conversions

Use unit analysis to “balance” both sides of a formula.
Convert within a given system of measure.
Convert between different systems of measure.

Using Unit Analysis when Evaluating Formulas

Everything you measure has a number with some sort of unit of measure
attached. The unit can be feet, pounds, dollars per hour, people, degrees, or any
of countless other ways in which real-life objects are measured.

Unit Analysis
Unit analysis is the process of changing from one unit of measure to another.
Change occurs when units are multiplied or divided. Addition and subtraction
Study Tip
always preserve units.
Many people have found
that unit analysis is the most Examples: 2 ft + 3 ft = 5 ft Addition preserves units.
useful “trick” they were ever 8 oz − 2 oz = 6 oz Subtraction preserves units.
taught in math. Using it and
understanding it can open
your eyes to all sorts of math
( ) $
18 — (10 hr) = $180
hr
Multiplication changes units.

that appears mysterious 320 mi mi

without it. — = 40 — Division changes units.
8 gal gal

Using Unit Analysis

In 2010, the average hourly billing rate for attorneys in the United States was
$413 per hour for litigation, $302 per hour for labor or employee cases, and
$294 per hour for real estate cases.
a. What would you expect to pay for 1200 hours of litigation?
b. You paid $2850 for 9.5 hours of legal work on a mortgage. What hourly
rate did your attorney charge?
c. Your attorney represented you for 25% contingency on a personal injury
case in which you were awarded $600,000. Your attorney spent 1000 hours
on the case. What was the hourly billing rate?

SOLUTION

( $
)
a. 413 — (1200 hr) = $495,600
hr
$2850
b. — = 300 —
9.5 hr
$
hr
25% of $600,000 $150,000 $
c. —— = — = 150 —
1000 hr 1000 hr hr

Checkpoint Help at

An attorney at a law firm billed an average of 55 hours in litigation fees

per week for a year. Estimate the amount of revenue the attorney brought
into the law firm during the year.

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1.4 Units & Conversions 35

Using Unit Analysis

It is estimated that about 125 species of birds
and 60 species of mammals have become
extinct since 1600. There are approximately
1000 species of birds and mammals that are
currently facing extinction. Including all
types of plant and animal species, the number
of endangered species is around 20,000.
a. Estimate the number of species of birds that
will become extinct in the next 100 years. Th Endangered
The E d d Species
S i
b. Estimate the number of years in which Coalition works to protect
40 more species of mammals will have endangered species and
become extinct. their habitats.

SOLUTION
This estimate is, of course, quite primitive because it is based only on the
rate of extinction during the 410 years from 1600 to 2010.

The giant panda was listed as

endangered in 1990.
( 125 species
)
a. — (100 years) ≈ 30.49 species
410 years
So, you could estimate that 30 species of birds will become extinct during
the next 100 years.
b. This is the most difficult type of question in unit analysis. You need to
perform an operation so that the resulting units are years. To do this,
you can use the Invert and Multiply Rule for dividing by a fraction.

( )
40 sp
species 410 years
— = (40 species) — ≈ 273.33 years
60 species
sp 60 species
—
410 years
y
Invert the denominator and multiply.

yo could estimate that it might take about 270 years for

So, you
additio 40 species of mammals to become extinct.
an additional

Here is a simple eexample of dividing

by a fraction. How many one-eighth INCH
1 2 3
inches?
inches are in 2 inc
2 23 24 25 26 27 28 29 30
2 in.
()
— = 2 — = 16
1
— in.
1
8

8
The bald eagle was once listed as an
Invert the denominator and multiply.
endangered species. In 2007, it was
removed from the list due to success
in protecting the species.
Checkpoint Help at

c. Estimate the number of species of mammals that will become extinct

in the next 100 years.
d. Estimate the number of years in which 40 more species of birds will
have become extinct.

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36 Chapter 1 The Mathematics of Calculation

Converting Units within a Given System of Measure

Converting Units
To convert from one type of unit to another, multiply by a convenient form of
the number one.
One

( )
12 in.
Example: 2 ft = 2 ft — = 24 in.
1 ft

Common Unit Conversions

C
U.S. Customary Metric
Distance: 1 mi = 5280 ft 1 km = 1000 m
1 yd = 3 ft 1 m = 100 cm
1 ft = 12 in. 1 cm = 10 mm
Volume/Capacity: 1 gal = 4 qt 1 L = 1000 mL
1 qt = 4 cups
1 cup = 8 fl oz
Weight/Mass: 1 lb = 16 oz 1 kg = 1000 g

Converting Units
How many seconds are in a calendar year of 365 days?

SOLUTION
At first, this question might seem overwhelming. But, you can find the answer
by simply multiplying by three carefully chosen forms of the number one.
One

365 days = (365 days) — — —

( )( )( )
24 hr
1 day
60 min
1 hr
60 sec
1 min

= 31,536,000 sec

There are 31,536,000 seconds in a calendar year of 365 days.

Checkpoint Help at
Study Tip
A day is the length of time it A solar year is the time it takes Earth
takes Earth to complete one to complete one revolution of its
revolution about its axis. orbit about the Sun. A solar year is Sun
The fact that a solar year is 365.24218967 days. How many more
not a whole number of days seconds are in a solar year than in a
has perplexed calendar Earth Revolution
calendar year?
makers for many centuries.

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1.4 Units & Conversions 37

Converting Units
When an object
o falls, it accelerates. As its
increases, the air resistance increases.
speed in
Eventually, the air resistance will offset the
Even
weight of the object, and the object will
we
rreach “terminal velocity.”

Use the graph to find each velocity in

feet per second.
a Terminal velocity before the
a.
parachute opens— during free fall
b. Terminal velocity after the
parachute opens

140
Speed (miles per hour))

120
Parachute opens
100 Terminal
velocity
80

60 Accelerates Decelerates
40
Terminal
20 velocity
Jumps Lands
0
0 10 20 30 40 50 60 70 80
Time (seconds)

SOLUTION
a. From the graph, the free-fall terminal velocity is about 110 miles per hour.
Study Tip
Notice the difference in the
“form of one” used in the
mi
( mi
)(
110 — = 110 — — — — ≈ 161.33 —
hr hr
5280 ft
1 mi )( 1 hr
60 min )( )
1 min
60 sec
ft
sec

solutions. The free-fall terminal velocity is about 161 feet per second.
60 sec b. The parachute terminal velocity is about 10 miles per hour.
Example 3: —
1 min
1 min
Example 4: —
60 sec
mi
( )( mi 5280 ft
10 — = 10 — — — — ≈ 14.66 —
hr hr 1 mi )( 1 hr
60 min )( )
1 min
60 sec
ft
sec

The form used depends on The parachute terminal velocity is about 15 feet per second.
the units you are trying to
obtain in your answer.
Checkpoint Help at

c. Estimate the time the parachutist spends in free fall. Explain

your reasoning.
d. Estimate the time the parachutist spends with the parachute open.
Explain your reasoning.

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38 Chapter
ter 1 The Mathematics of Calculation

Converting Units Between Different Systems

Study Tip
Common Unit Conversions
Quick approximations: Distance: Temperature:
8
1 mi ≈ — km 1 mi ≈ 1.61 km 9
F = — C + 32
5 1 in. = 2.54 cm 5
F ≈ 2C + 30
Volume/Capacity: Weight/Mass:
1 gal ≈ 4 L
2 1 gal ≈ 3.79 L 1 lb ≈ 0.45 kg
1 lb ≈ — kg
5

Converting Units
You are driving on a Canadian highway. The speed limit is
kilometers per hour. You figure that you can drive
100 kilomete
kilometers per hour over the limit without getting
10 kilome
ticket. Your speedometer only shows miles per hour.
a ticke

aa. What is the maximum speed you should

be traveling in miles per hour?

b. Following your “rule,” what is the maximum

b
speed you should be traveling in miles per hour
to avoid getting a speeding ticket?

SOLUTION
One

(
a. 100 km = 100 km — ≈ 62 mi
1 mi
1.61 km )
The speed limit is about 62 miles per hour.

(
b. 110 km = 110 km — ≈ 68 mi
1 mi
1.61 km )
Your “rule” indicates that you can drive up to 68 miles per hour
without getting a speeding ticket.

Checkpoint Help at

While in Canada, you stop at a gas station. You have heard

that gas prices in Canada are considerably more expensive
than in the United States.

c. From the sign at the left, does this seem to be true?

REGULAR

105 9 d. To answer part (c), what conversion should you

GAS
cents per liter consider in addition to the conversion between
PREMIUM gallons and liters?

115 9
cents per liter
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1.4 Units & Conversions 39

Converting Temperature Units

You remember hearing that there is one temperature that has the same degree
measure in the Fahrenheit and Celsius scales. You cannot remember what the
temperature is. How can you find it?

SOLUTION
One way is to use algebra. You could let C = F and solve for F in the equation
9
F = — F + 32.
5
9
0 = — F − F + 32 Subtract F from each side.
5
4
0 = — F + 32 Combine like terms.
5
4
−32 = — F Subtract 32 from each side.
5
−160 = 4F Multiply each side by 5.
−40 = F Divide each side by 4.
But you may have forgotten how to solve this equation. Another instructive way
to find the temperature is to use a spreadsheet.

A B C
1 Ce
Celsius Fahrenheit
2 100 212
3 90 194 (9/5)*A2à32
4 80 176
5 70 158
6 60 140
7 50 122
8 40 104
9 30 86
10 20 68
11 10 50
12 0 32
13 -10 14
14 -20 -4
15 -30 -22
16 -40 -40
17 -50 -58

The temperature −40 degrees is the same on both scales.

Checkpoint Help at

You are staying at a hotel in Canada. Your room feels cold, and you notice
that the temperature is set at 20°C.
a. What is the room temperature in degrees Fahrenheit?
b. What should you set the temperature at to obtain a temperature of 77°F?

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40 Chapter 1 The Mathematics of Calculation

1.4 Exercises
Online Shopping The table shows an online store’s shipping rates. In Exercises 1– 6,
use the table. (See Examples 1 and 2.)

1. You order a 5-pound textbook with 3–5 day

shipping. What is the shipping fee?
Delivery Time Shipping Rate

3–5 days $0.49/lb 2. You order a 330-pound weight set with

2-day shipping. What is the shipping fee?
2 days $0.89/lb

1 day $1.89/lb 3. You order a 26-pound television. Suppose

you use 3–5 day shipping instead of 2-day
shipping. How much will you save?

4. You order a 119-pound couch. Suppose you

use 1-day shipping instead of 3–5 day shipping.
How much more will you pay?

5. You wait until the last minute to buy a 159-pound

treadmill for a birthday present. The online price of
the treadmill is $110 less than the price of the same
treadmill at a local fitness store. You need the treadmill
by tomorrow, so you will have to pay for 1-day shipping.
a. Estimate the shipping fee for the treadmill.
b. Will it cost more to order the treadmill online with
1- day shipping or to buy the treadmill at the local
fitness store?
c. Does your answer to part (b) change if you had
an extra day to place your order? What if you
had an extra week?

6. You recently purchased a pair of headphones on-

line. The shipping fee was $12.24. You believe that
you were overcharged for 3–5 day shipping, but the
weight of the headphones is not listed on the receipt.
a. How much do the headphones have to weigh for the
fee to be correct? Is the weight reasonable?
b. If the weight is not reasonable, write an e-mail to the store explaining
the error and asking for a refund.

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1.4 Units & Conversions 41

Travel Time The road sign shows your distance to several nearby cities in miles.
In Exercises 7 and 8, use the road sign. (See Example 3.)
7. You are driving at 45 miles per hour. Which of the following expressions should you
use to determine how long it will take to get to Ventura? How long will it take?
45 mi 60 min
a. 54 mi × — × — =
1 hr 1 hr

1 hr 60 min
b. 54 mi × — × — =
45 mi 1 hr

45 mi 1 hr
c. 54 mi × — × — =
1 hr 60 min

1 hr 1 hr
d. 54 mi × — × — =
45 mi 60 min

8. You are driving at 65 miles per hour. How

long will it take to get to Los Angeles?

Human Heart In Exercises 9 –12, use the

information. (See Examples 3 and 4.)
9. How much does a heart weigh in pounds?

10. A human brain weighs about 3 pounds. How

many ounces heavier is a brain than a heart?

11. How many quarts of blood does a heart

pump in 1 minute?

12. How many gallons of blood does a heart

A human heart weighs about 10 ounces.
pump in 1 day?
On average, it beats about 70 times per
minute and pumps about 2.5 fluid ounces
of blood with each beat.

Heart Rate A patient’s heart rate can be determined

from an electrocardiogram (EKG). The time between
two peaks on the EKG represents one heartbeat. In
Exercises 13 and 14, use the EKG. (See Example 4.)
13. Ringo Starr sang a song that had the words “In a
heartbeat, I’ll be by your side.” What is the length
of one heartbeat?

14. What is the heart rate of the person whose EKG is

shown? Is the heart rate shown normal?
0.20 sec

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42 Chapter 1 The Mathematics of Calculation

Seven Summits The map shows the height of the highest mountain on each of Earth’s
seven continents. Climbing all seven mountains, also known as the Seven Summits, is
considered a challenge in mountaineering. In Exercises 15–20, use the information on
the map. (See Examples 5 and 6.)

Mt. McKinley
6194 m
Mt. Elbrus
5.642 km
Mt. Everest
9676 yd

Mt. Carstensz
Mt. Kilimanjaro
16,024 ft
5.895 km

Mt. Aconcagua
7614 yd

Mt. Vinson
16,067 ft

15. Determine the height of Mount McKinley in feet.

16. Order the heights of the Seven Summits from highest to lowest.

17. You are climbing Mount Everest. After 1 hour, you have climbed
183 meters. Find your rate of ascent in feet per minute.

18. The original Seven Summits included Mount Kosciuszko in

mainland Australia instead of Mount Carstensz. Mount Kosciuszko
is about 2228 meters high. Is it higher or lower than Mount Carstensz?
Explain.

19. At the summit of Mount Everest, water boils at 69°C.

a. Convert this temperature to degrees Fahrenheit.
b. Could you boil a potato at the summit until it is cooked?
Explain. The Seven Summits on the map
are also known as the Messner List,
20. For every 1000 feet of elevation, the air temperature drops about 6.5°C. named after mountaineer
Assume the temperature at the foot of Mount Kilimanjaro is 23°C. Reinhold Messner.
Estimate the temperature at the summit in degrees Fahrenheit.

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1.4 Units & Conversions 43

Extending Concepts
Exchange Rates The table shows a sample of currency exchange rates for
November 2010. In Exercises 21–24, use the table.

From U.S. Dollars to ncy

From Foreign Currency
Currency
Foreign Currency to U.S. Dollars

British pound $1 = £0.6325 £1 = $1.5813

European euro $1 = €0.7465 €1 = $1.3396

Canadian dollar $1 = C$1.0239 C$1 = $0.9767

Mexican peso $1 = Mex$12.4823 Mex$1 = $0.0801

Japanese yen $1 = ¥83.065 ¥1 = $0.012

Indian rupee $1 = Rs. 45.81 Rs. 1 = $0.0218

21. Online Shopping You order a product from a British website. The list
price is £223. How much does the product cost in U.S. dollars?

22. Carry-on Luggage In Germany, an airline charges an extra €10 for

each additional kilogram of carry-on luggage over 10 kilograms. Your
carry-on luggage weighs 26.5 pounds. How much extra can you expect
to pay in U.S. dollars?

23. Gas Station A gas station in Mexico City charges Mex$7.73 for a
liter of gasoline. Your car’s 23-gallon tank is almost empty. How much
will it cost in U.S. dollars to fill the tank?

24. Traveling Around the World You are in the United States and plan to
travel to several other countries. You have $3000 in cash.

a. Your first destination is Canada. Convert your cash to

Canadian dollars.

b. You leave Canada for Great Britain with C$2800. Convert

this to British pounds.

c. You depart from Great Britain for Spain with 1400 British
pounds. Convert this to European euros.

d. Your next stop is India. After your time in Spain, you have
1000 euros. Convert this to Indian rupees.

e. From India, you leave for Japan. You have 50,000 rupees after
your time in India. Convert this to Japanese yen.

f. You return to the United States with 80,000 Japanese yen.

Convert this to U.S. dollars. How much money did you
spend total?

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44 Chapter 1 The Mathematics of Calculation

1.3–1.4 Quiz

Disabilities The circle graph shows the age categories of people with disabilities
in the United States. In Exercises 1– 4, use the circle graph.
1. There are about 36 million people with disabilities in the Disabilities By Age
United States. How many of the people with disabilities
are 65 years old or older?
32%
39%
Morally
2. The population of the United States is about 310 million. 65
wrongyears
Estimate the percent of the general population that is disabled. and over
53%
3. People who are 65 years old and over only make up about 18 to 64 years
13% of the general population. Compare this to the percent
of the disabled population for this group. Why do you think 8%
there is a discrepancy? Under 18 years

4. Compare the percent for people under 18 years old to the percents for the
other categories. Why do you think the percent for people under 18 years
old is so small?

5. Horse Height The height of a horse is measured from the ground to its withers
(shoulders). The traditional unit of measure is “hands,” where 1 hand is equal to
4 inches. A horse is 15 hands high. What is its height in inches?

6. Top Speed American Quarter Horses are the

fastest horses in the world. They can run
55 miles per hour. How fast is this in
feet per second?

7. Belmont Stakes The length of

a horse race is often given in
furlongs, where 1 furlong
is equal to 0.125 mile.
The Belmont Stakes is
a 1.5-mile horse race that
takes place every June at
Belmont Park in Elmont,
New York. How long is the
Belmont Stakes in furlongs?

8. Record High The record high temperature

in June in Elmont, New York, is 101°F.
What is the record high temperature in
degrees Celsius?

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Chapter 1 Summary 45

Chapter 1 Summary

Section Objectives How does it apply to you?

Use the order of operations to You need to know the order of operations to do calculations
Section 1

evaluate a numerical expression. properly in your daily life. (See Examples 1 and 2.)

Use a calculator to evaluate To get an accurate answer, you must use the correct keystroke
a numerical expression. sequence when using a calculator. (See Example 3.)

Use the order of operations You will use common formulas many times throughout your
to evaluate a formula. life. (See Examples 4, 5, and 6.)

Using “exact” numbers is often unreasonable. It is usually

Round numbers in a real-life
reasonable to round numbers according to the context.
context.
Section 2

(See Examples 1 and 2.)

Large and small numbers are often written in scientific or

Read large and small numbers.
exponential notation. (See Examples 3 and 4.)

When answering a question, remember that the accuracy of

Understand the concept of
the output is only as good as the accuracy of the input.
“garbage in, garbage out.”
(See Examples 5 and 6.)

Percents are everywhere. You need to have a firm grasp of

Understand and find a percent
percents to make sense of today’s world. (See Examples 1
Section 3

of a number.
and 2.)

Determine what percent one Percent can be used to compare two numbers in the same
number is of another number. context. (See Examples 3 and 4.)

Percent can be used to describe the amount that a quantity

Use percent to represent change.
changes over time. (See Examples 5 and 6.)

Use unit analysis to “balance” Everything you measure has a number with some sort of
Section 4

both sides of a formula. unit of measure attached. (See Examples 1 and 2.)

Convert within a given system You need to know how to compare units. (See Examples 3
of measure. and 4.)

Convert between different Two systems of measure are used in the United States. You
systems of measure. need to know how to compare units. (See Examples 5 and 6.)

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46 Chapter 1 The Mathematics of Calculation

Chapter 1 Review Exercises

Section 1.1
1. Train Fare A family of six takes a one-way trip on a train. The cost is $60 per adult
and $45 per child. Which of the following keystroke sequences is better for finding
the total cost? Explain your reasoning.

a.

b.

2. Seating The seating area of a passenger car on a

high-speed train is in the shape of a rectangle. It has
a length of 70 feet and a width of 9 feet. Estimate
how many seats can fit in the passenger car. Explain
your reasoning.

High-speed Rail In Exercises 3 – 6, use the facts about high-speed rail in China.

• In 2010, a Chinese passenger train hit a record

speed of 302 miles per hour during a test run.

• It reached the top speed on a segment of the

824-mile-long line.

• The line is expected to open in 2012 and will

halve the current travel time between
Beijing and Shanghai to five hours.

• China already has the world’s longest

high-speed rail network, and it plans to cover
8125 miles by 2012 and 10,000 miles by 2020.

3. At its top speed, about how long does it take the passenger train to travel 1050 miles?

4. How long did it take to travel between Beijing and Shanghai before 2012?

5. From 2012 to 2020, about how many miles per year does China plan to expand its
high-speed rail network?

6. The track distance between Beijing and Shanghai is 819 miles. Why do you think it
takes five hours to make this trip?

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Chapter 1 Review Exercises 47

Section 1.2
Oil In Exercises 7–10, use the pictograph.

Top Five Oil-consuming Countries in 2008

Oil consumption in 2008 Oil production in 2008

U.S.

China

Japan

India

Russia
Key: â 1,000,000 barrels of oil per day

7. Consider the consumption side of the pictograph.

a. Estimate the number of barrels of oil consumed by the United States
per day. Write your answer in standard decimal notation.
b. For how many years do you think the United States and the rest of the
world can continue consuming oil at this rate? Explain your reasoning.

8. Estimate the number of barrels of oil produced by Russia per day.

Write your answer in exponential notation.

9. A barrel of oil contains 42 gallons of oil.

a. In 2008, the population of China was about 1.3 billion. Estimate the
number of gallons of oil consumed by China per person per day.
b. In 2008, the population of the United States was about 304 million.
Compare your estimate in part (a) with the number of gallons of oil
consumed by the United States per person per day.

10. Use the formula below to estimate and compare the net exports for
Russia and Japan. What does a negative value indicate?
Net exports = oil produced − oil consumed

11. Iran Use the information in the doughnut graph Destination of Oil Exports from Iran in 2008
to estimate the total number of barrels of oil (in thousands of barrels of oil per day)
Japan imported from Iran in 2008. Looking at the
pictograph above, why do you think that Japan is Japan, 520
Other, 1030
one of Iran’s top importers?

12. U.S. Sanctions The United States does not import

any oil from Iran because of economic sanctions
against the Middle Eastern country. It is estimated
China, 430
that lifting the sanctions could save the United States
$76 billion per year. Suppose sanctions were lifted.
Estimate how much the United States would save
per day. South Korea, 210 India, 410

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48 Chapter 1 The Mathematics of Calculation

Section 1.3
Earth’s Water Distribution In Exercises 13–20, use the graph.

Distribution of Earth’s Water

Freshwater 3%
Other 0.9% Surface Rivers 2%
water
0.3% Swamps 11%
Groundwater
30.1%

Saline
(oceans) Icecaps Lakes 87%
97% and
Glaciers
68.7%

Earth’s water Freshwater Fresh

surface water
(liquid)

13. There are about 332.5 million cubic miles of water on Earth. How many cubic miles
of Earth’s water is freshwater?

14. How much freshwater is frozen in icecaps and glaciers?

15. The lakes on Earth hold 42,320 cubic miles of water. Of this, 20,490 cubic miles are
saline. The rest are freshwater. What percent of the water in lakes is freshwater?

16. Groundwater accounts for about 5.6 million cubic miles

of water. What percent of Earth’s water is underground?

17. Suppose climate change causes some of

the icecaps and glaciers to melt, adding
6000 cubic miles of freshwater to the
surface water. Use percent to describe
the increase in surface water.

18. What effect would a significant increase

in surface water have on Earth and
its inhabitants?

19. One of the categories in the graph is “Other.”

Where else do you think you can find
freshwater besides the categories shown?

20. How do you think scientists estimated that there

are about 332.5 million cubic miles of water on Earth?

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Chapter 1 Review Exercises 49

Section 1.4
Nautical Units In Exercises 21–26, use the table.
21. During the U.S. Civil War, the Confederate ironclad CSS Virginia clashed 1 fathom = 2 yards
with the Union ironclad USS Monitor in the Battle of Hampton Roads. 1 nautical mile ≈ 1013 fathoms
The speed of the Monitor was about 9 miles per hour, and the speed of the
1 nautical mile ≈ 1.15 miles
Virginia was about 6 knots. Which ship was faster?
1 league = 3 nautical miles
1 league ≈ 3.45 miles
22. The phrase “deep six” means to throw something away. It was originally
used by boaters to mean 6 fathoms. Convert this depth to feet. 1 knot = 1 nautical mile/hr

23. Territorial waters around the United States used to be defined by

the reach of a cannon ball fired from shore, or a “cannon shot.”
One cannon shot was defined as 3 nautical miles.
a. Convert 1 cannon shot to miles.
b. Compare this definition of territorial waters to the
modern definition.

24. Jules Verne wrote a famous novel called

20,000 Leagues Under the Sea.
a. Convert 20,000 leagues to miles.
b. At its deepest point, the ocean is about 7 miles deep.
What do you think the title of Verne’s novel means?
Explain your reasoning.

25. Below is an excerpt from William Shakespeare’s The Tempest.

Full fathom five thy father lies;
Of his bones are coral made;
Those are pearls that were his eyes;
Nothing of him that doth fade
But doth suffer a sea-change
Into something rich and strange.
Shakespeare writes that the man lies 5 fathoms deep. Convert this depth to feet.

26. Mark Twain was the pen name of

Samuel Clemens, who spent several
years as a steamboat pilot. He chose
the name because the leadsman on
a steamboat would call out “mark
twain” to indicate that the water
depth was 12 feet and safe for the
boat to pass. Convert this depth
to fathoms.

Copyright © Larson Texts, Inc. All rights reserved.

2 The Mathematics of
Consumption

2.1 Unit Prices

Find the unit price of an item.
Compare the unit prices of two or more items.
Find the annual cost of an item.

2.2 Markup & Discount

Find the markup on an item.
Find the discount on an item.
Find the final price after multiple discounts.

2.3 Consumption Taxes

Find the sales tax on an item.
Find the excise tax on an item.
Find the value-added tax on an item.

2.4 Budgeting
Create and balance a monthly budget.
Write checks and balance a checkbook.
Analyze a budget.

Copyright © Larson Texts, Inc. All rights reserved.

Total Federal Excise Taxes in the United States
100

Amount (billions of dollars)

90

$87,829,000,000
80
70

$73,961,000,000
60

$62,483,000,000
50
40
30
20
10
0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015
Year

Example 4 on page 77 describes the changes in federal excise

tax revenues. Why did the excise tax revenue decline from
2006 to 2009?

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52 Chapter 2 The Mathematics of Consumption

2.1 Unit Prices

Find the unit price of an item.
Compare the unit prices of two or more items.
Find the annual cost of an item.

Unit Prices
The unit price of an item is the cost per pound, quart, or other unit of weight or
volume. It is often posted on the shelf tag below the item, along with the item price.

$2.75 Item price

*N
North Coast Co-op * 24 OZ Total units
ARROWHEAD MILLS
AR
C
CORN GRITS - Organic Yellow
07
07433338525 00179 12 0.11/OZ Unit price

Finding a Unit Price

Find
To find a unit price, divide the item price by the total number of units.
T
item price
Unit price = —
total units

Finding a Unit Price

Check that the unit price shown above is correct.

SOLUTION
item price
Unit price = —
total units
$2.75
= — ≈ $0.1146
24 oz
Rounded to the nearest cent, the unit price is $0.11 per ounce.

Checkpoint Help at

Find the unit price of each item.

a. b. c.

$853.65 for 8 oz $119 for 1.7 fl oz $10.50 for 8 oz

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2.1 Unit Prices 53

Analyzing a Unit Price

Dairy farmers are paid for every 100 pounds of milk produced.
a. In 2010, how much did a dairy farmer earn per gallon of milk produced?
(A gallon of whole milk weighs about 8.6 pounds.)
b. In 2010, the price of a gallon of milk was about $3.25. What percent of the
price did the dairy farmer earn?

Prices Paid to Dairy Farmers for 100 Pounds of Milk

20.0

19.0
Dollars per 100 pounds
18.0

Study Tip 17.0

An old saying is “A pint is 16.0

a pound the world around.”
The actual weight of a 15.0
pint of water is about 14.0
1.04 pounds. There are
8 pints in a gallon, so a 13.0
gallon of water weighs
12.0
about 8.32 pounds.
0.0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Year

SOLUTION
a. In 2010, a dairy farmer earned about $16.50 for every 100 pounds of
milk produced.

Unit price = — = — — = —
$16.50
100 lb
$16.50 8.6 lb
100 lb 1 gal ( ) $1.419
gal

A dairy farmer earned about $1.42 per gallon of milk produced.

b. Amount earned by farmer

$1.42
— ≈ 0.44
Price per gallon $3.25

For milk to be labeled “organic,”

the cows must meet four criteria. The dairy farmer earned about 44% of the price.
• Not treated with growth
hormone Checkpoint Help at
• Not given antibiotics while
in a herd In 2010, a dairy farmer earned about $25 for every 100 pounds of milk produced
• Not fed feed treated with organically. The price of a gallon of organic milk was about $5.25.
pesticides c. How much did a dairy farmer earn for a gallon of organic milk in 2010?
• Must have access to pasture
d. What percent of the price did the dairy farmer earn?

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54 Chapter 2 The Mathematics of Consumption

Comparing Unit Prices

Comparing Unit Prices

Compare the unit prices of the three laundry detergents.
a. Brand A b. Brand B c. Brand C

100 fl oz 2 gal 50 fl oz
$12.99 $17.99 $7.99

SOLUTION
item price $12.99
Study Tip a. Unit price = — = — ≈ $0.13 per fl oz
total units 100 fl oz
To compare unit prices, you
need the same units. That
is why a conversion factor
is used to calculate the unit
item price
b. Unit price = — = — — ≈ $0.07 per fl oz
total units (
$17.99 1 gal
2 gal 128 fl oz )
price of brand B. item price $7.99
c. Unit price = — = — ≈ $0.16 per fl oz
total units 50 fl oz

Brands A and C are comparable, with brand A being a little less per fluid ounce.
Brand B has a considerably lower unit price.

Checkpoint Help at

Each of the above detergents recommends using 2 fluid ounces per load. Compare
the cost per load of brand B with the cost per load of homemade laundry soap.

Homemade Laundry Soap (Use 1/2 cup per load)

* 1 3 bar Fels-Naptha Soap ($0.40)
* 1 2 cup washing soda ($0.17)
* 1 2 cup borax powder ($0.14)

Pre
Preparation:
P Grate the soap and put it in a cooking pan. Add 6 cups water
and heat until the soap melts. Add the washing soda and borax and stir
unt
until dissolved. Pour 4 cups hot water into a bucket. Add the soap mixture
and stir. Then add 1 gallon plus 6 cups water and stir. Let the soap
mix
mixture stand for about 24 hours and it will gel.

Copyright © Larson Texts, Inc. All rights reserved.

2.1 Unit Prices 55

Comparing Unit Prices

Compare the unit prices of the different sizes of ppizza.
):
a. Personal (10-inch diameter):
$5.99

b. Small (12-inch diameter):

$9.99

):
c. Medium (16-inch diameter):
r â 5 in.
$13.99
A Ƽ 78.5 in.2
d. Large (20-inch diameter):
$18.99

r â 6 in.
A Ƽ 113 in.2

SOLUTION
r â 8 in. Use the formula for the area of a circle to find the area of each pizza.
A Ƽ 201 in.2 Remember that the formula for the area of a circle is A = πr 2, where
π is approximately equal to 3.14 and the radius r is half the diameter.

a. Area ≈ 3.14( 52 ) = 78.5 in.2

$5.99
Unit price ≈ —2 ≈ $0.076 per sq in. Personal
râ1
10 in. 78.5 in.
AƼ3314 in.2
b. Area ≈ 3.14( 62 ) ≈ 113 in.2

$9.99
Unit price ≈ —2 ≈ $0.088 per sq in. Small
113 in.

c. Area ≈ 3.14( 82 ) ≈ 201 in.2

$13.99
Unit price ≈ —2 ≈ $0.070 per sq in. Medium
201 in.
Notice that when the radius of
the pizza doubles, the area is
four times greater. d. Area ≈ 3.14( 102 ) = 314 in.2

$18.99
Unit price ≈ —2 ≈ $0.060 per sq in. Large
314 in.

The small pizza has the greatest unit price. The large pizza has the least unit price.

Checkpoint Help at

Find the unit price of a jumbo pizza.

e. Jumbo (24-inch diameter): $24.99

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56 Chapter 2 The Mathematics of Consumption

Using Unit Prices to Find Annual Savings

Because unit prices often differ by small amounts, people often ignore the
differences and think, “It’s just a few cents different.” However, you can get a
better idea of the differences when you compare them on the basis of annual
consumption.

Finding the Annual Savings

The table shows the average annual consumption by Americans for
several products.

Average Annual Consumption by Americans

Beef 61.2 lb Chicken 58.8 lb Pork 46.0 lb
Turkey 13.9 lb Margarine 4.2 lb Eggs 247
Whole milk 6.1 gal Tea 8.0 gal Butter 5.0 lb
Cheese 32.4 lb Wheat flour 136.6 lb Sugar 65.7 lb

Es
stiiima
maate the annu
Estimate annual savings for a family of four people for the following.
a. The
T family purchases all of its whole milk at a discount store in which
t whole milk averages $1.20 less per gallon than at a supermarket.
the
b. The
T family purchases all of its meat at a discount store in which the
meat averages $0.85 less per pound than at a supermarket.

SOLUTION
a. The total amount of whole milk consumed (per person) is 6.1 gallons.
For a family of 4, this amounts to
4(6.1) = 24.4 gallons.
If the family was able to save $1.20 per gallon, the annual savings would be
1.20(24.4) = $29.28.
b. The total amount of meat consumed (per person) is
61.2 + 58.8 + 46.0 + 13.9 = 179.9 pounds.
For a family of 4, this amounts to
4(179.9) = 719.6 pounds.
If the family was able to save $0.85 per pound, the annual savings would be
0.85(719.6) = $611.66.

Checkpoint Help at

Estimate the annual savings for a family of 4 people when the family purchases
all of its wheat flour and sugar at a discount store at an average savings of
$0.67 per pound.

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2.1 Unit Prices 57

Eating In or Eating Out?

The list shows the ingredients for six cheeseburgers.

$2.84 1 1/2 lb hamburger

$2.99 6 hamburger buns
$0.90 2 tomatoes
$0.35 1 onion
$2.00 6 cheese slices
$0.59 1 head lettuce

a. Estimate the cost

st
per cheeseburger.
er
b. You can buy a
urger for
quarter-pound cheeseburger
$3.49. How much will you save by
ers instead off buying six?
making six cheeseburgers
c. Suppose that once a week you make six cheeseburgers instead of
buying six. How much will you save in a year?

SOLUTION
a. The cost of the ingredients is
2.84 + 2.99 + 0.90 + 0.35 + 2.00 + 0.59 = $9.67.
The unit price per cheeseburger is
$9.67
Unit price = —— ≈ $1.61.
6 cheeseburgers
b. The cost of buying 6 cheeseburgers is
6(3.49) = $20.94.
You will save 20.94 − 9.67 = $11.27.
c. By saving the amount in part (b) once a week for a year, you will save
(11.27)(52) = $586.04.

Checkpoint Help at

You are preparing spaghetti for four people.

$1.59 1 box spaghetti
$1.89 1 lb hamburger
$3.49 1 jar spaghetti sauce
$2.89 1 package parmesan cheese
$0.35 1 onion
$0.79 1 can sliced mushrooms

d. What is the unit price per person?

e. How much more would you pay to buy 4 spaghetti meals
at a restaurant for $7.95 each?

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58 Chapter 2 The Mathematics of Consumption

2.1 Exercises
Groceries In Exercises 1– 4, find the unit price of the item. (See Example 1.)
1. Peanuts 2. Ramen 3. Grape juice 4. Ice cream

$2.79 for 16 oz $4.29 for 72 oz $3.39 for 64 fl oz $4.49 for 1.5 qt

Strawberries In Exercises 5 and 6, use the graph. (See Example 2.)

Prices Paid to Growers for 100 Pounds of Strawberries

110
Dollars per 100 pounds

105
100
95
90
85
80
75
70
65
60
0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
20

Year

5. Strawberry growers are paid for every 100 pounds of

strawberries produced.
a. In 2009, how much did a grower earn for a pound
of strawberries?
b. In 2009, the price of a 16-ounce container of
strawberries was $2.57. What percent of the price
did the grower earn?

6. In 1991, the average retail price of a pound of strawberries

was $1.32.
a. In 1991, how much did a grower earn for a pound of strawberries?
b. In 1991, what percent of the average retail price did the grower earn?
c. Compare the percent in part (b) with the percent from Exercise 5. Did growers earn a
larger portion of the average retail price in 1991 or in 2009? Explain your reasoning.

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2.1 Unit Prices 59

Ketchup In Exercises 7–10, use the information below. (See Examples 3 and 4.)

Brand A Brand B Brand C

20 oz 4 lb
$3.46 40 oz
$1.89 $2.40

7. Compare the unit prices of the three brands of ketchup. Which is the
best buy? Explain your reasoning.

8. Brand D contains 114 ounces and costs $8.38.

he
a. Compare the unit price of brand D with the unit prices of the
est buy?
three brands above. Is the largest product necessarily the best
Explain your reasoning.
ake sense
b. You use less than 20 ounces of ketchup per year. Does it make
n your reasoning.
for you to buy the brand with the lowest unit price? Explain

up.
9. A 40-ounce bottle of ketchup contains about 4.2 cups of ketchup.
(One cup equals 8 fluid ounces.)
a. What is the unit price of brand C in dollars per fluid ounce??
ces in the
b. Why do you think a manufacturer would prefer to use ounces
unit rate?

10. Below is a recipe for homemade ketchup.

Homemade Ketchup (Makes 48 ounces)

es)
1
* 4 lb tomatoes ($7.99) * 1 2 onions ($0.37)
* 1 tsp ground cloves ($0.65) * 1 tsp salt ($0.01)
* 1 tsp allspice ($0.28) * 1 cup vinegar ($0.24)

Preparation: Place the tomatoes in a boiling pot of water and leave them in
until the skins split. Strain the tomatoes and allow them to cool. Peel the
skins, slice the tomatoes open, and remove the seeds. Dice the tomatoes
and onions and put them in a saucepan. Simmer for 10 minutes. Pour into a
blender. After blending, pour back into saucepan and add the other
ingredients. Stir the mixture. Simmer for 1 1 2 hours. Stir often. After
one-third has burned off, turn heat off. Allow time to cool.

a. Compare the unit price of homemade ketchup with the unit price of brand A above.
b. Your neighbor gives you 4 pounds of tomatoes from his garden. What is the unit
price of homemade ketchup when you do not have to pay for the tomatoes?
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60 Chapter 2 The Mathematics of Consumption

Beverage Consumption In Exercises 11–14, use the graph. (See Examples 5 and 6.)

Average Annual Beverage Consumption by Americans

60

50 48.8
Gallons per person

40

30
29.1
24.6
21.8 20.7
20
12.9
10

0
Carbonated Bottled Coffee Beer Milk Fruit drinks
soft drinks water
Beverage

11. At a discount store, fruit drinks average $1.08 less per gallon than at a supermarket.
A family of four people purchases all of its fruit drinks at the discount store.
Estimate the annual savings.

12. At a discount store, ground coffee averages $0.10 less per ounce than at a
supermarket. Four college roommates purchase all their ground coffee at the
discount store. Estimate the annual savings. (7.68 ounces of ground coffee
make 1 gallon of coffee.)

13. At a supermarket, a 24-pack of 16.9-fluid-ounce bottles of water costs $4.99.

a. At a discount store, a 35-pack of 16.9-fluid-ounce bottles of water costs

$4.49. Suppose you buy all your bottled water at the discount store instead
of at the supermarket. How much will you save per year? Some brands of bottled
b. Your tap water rate is $2.62 per 1000 gallons of water. Suppose you use tap water indicate on the label
water instead of buying bottled water at the supermarket. How much will that the water is from a
you save per year? public water source.
This means that the
14. You use 0.5 fluid ounce of coffee creamer with each 6-fluid-ounce “cup” of bottle contains purified
coffee. The creamer that you use costs $2.19 for 16 fluid ounces. You can make tap water.
homemade coffee creamer using the recipe shown.

Homemade Coffee Creamer (Makes 22 fluid ounces)

* 1 14-oz can sweetened condensed milk ($1.49)
1
* 1 2 cups milk ($0.29)
* 1 tbsp vanilla extract ($0.70)

Preparation: Pour the ingredients into a jar and shake well.

a. Estimate how much you could save annually by making your own creamer.
b. The vanilla extract is optional. Estimate how much you could save annually by making
your own creamer without the vanilla instead of buying the creamer at the store.
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2.1 Unit Prices 61

Extending Concepts
Product Downsizing Instead of increasing the price of a product, some manufacturers
decrease the amount of the product in a package but charge the same price. In
Exercises 15–18, analyze the effect of product downsizing on unit price.
15. What is the difference in unit price? 16. What is the difference in unit price?

Old size: 7 oz New size: 5 oz Orange

Juice
Price: $0.89 Price: $0.89 with Pulp

17. A manufacturer decreases the amount of product in

a package but keeps the price the same. What effect Old size: 64 fl oz New size: 52 fl oz
does this have on the unit price of the product? Price: $2.59 Price: $2.59
Explain your reasoning.

18. Is it possible to increase the unit price of a product by decreasing both

the size and the price? Explain your reasoning.

Paying More for Less The weight or volume listed on a product may be greater
than the actual amount of the product that you are receiving. In Exercises 19
and 20, analyze how you could end up paying more money for less product.
19. A 1-pound package of chicken costs $1.99.
a. The label on the package says “up to 15% solution.” This means
that 15% of the weight of the package is a solution. What is the
actual unit price per pound of chicken?
b. Compare the unit price in part (a) to the unit price on the package.

20. Two brands of bleach and

their prices are shown.

Brand A Brand B

96 fl oz 182 fl oz
$1.79 $2.12

a. Find the unit prices of the two brands in dollars per gallon. Based on your
calculations, which brand is the better buy?
b. Brand A is 6% bleach. Brand B is 3% bleach. You can make 3% bleach
by mixing 1 fluid ounce of brand A with 1 fluid ounce of water. How
many fluid ounces of 3% bleach can you make using brand A?
c. Find the unit prices of the two brands in dollars per gallon of 3% bleach.
Based on your calculations, which brand is the better buy?

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62 Chapter 2 The Mathematics of Consumption

2.2 Markup & Discount

Find the markup on an item.
Find the discount on an item.
Find the final price after multiple discounts.

Finding the Markup on an Item

Markup is the difference between the retail price and the price the retailer pays
for the item, or wholesale price.

Finding a Markup
The markup on an item is the difference between the retail price and the
wholesale price.
Markup = retail price − wholesale price
To find the markup percent, divide the markup by the wholesale price.
markup
Markup percent = ——
wholesale price

In fairness to retailers, you should remember that markup is the only way for
a retailer to make a profit. Markup is not equal to profit. Out of the markup,
a retailer has to pay for rent, utilities, taxes, salaries, benefits, and other
business expenses.

Finding a Markup Percent

Markup percents vary greatly. Prescription drugs and
jewelry tend to have high markup percents. Grocery
items and everyday clothing tend to have low markup
percents. Find the markup percent for each item.
a. Pair of earrings b. Pair of athletic socks
Wholesale price: $89.00 Wholesale price: $1.13 13
Retail price: $459.00 Retail price: $1.69
.69

SOLUTION
459 − 89 370 1.69 − 1.13 0.56
a. — = — b. — = —
89 89 1.13 1.133
≈ 4.157 ≈ 0.496
≈ 416% ≈ 50%

Checkpoint Help at

Find the markup percent for each item.

c. Automobile d. Leather chair
Wholesale price: $25,450 Wholesale price: $235
Retail price: $27,990 Retail price: $799

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2.2 Markup & Discount 63

Finding a Markup Percent

You live near a designer handbag outlet store.
The store sells discontinued and slightly damaged
handbags at prices that are well below normal
retail prices. You buy a handbag for $195. The
handbag normally retails for $895. You then put
the handbag on eBay® and sell it for $395.

a. What is your markup and markup percent?

b. Is your markup the same as your profit?
Explain.

SOLUTION
a. Your markup is
Study Tip
“Wholesale price” is a Markup = 395 − 195 = $200.
relative term. In Example 2,
you are the retailer, so the Your markup percent is
price you pay at the outlet
Markup
200
store becomes your Markup percent = —
195
wholesale price. Wholesale price
≈ 1.026
= 102.6%.
b. Your markup in this transaction is not the same as your profit. To find your
profit, you must also subtract your expenses.
eBay® insertion fee $2.00 Fee charged for listing
Final value fee $35.55 9% of $395
PayPal fee $11.76 2.9% of $395 + $0.30
Sales tax $11.70 6% paid at outlet store
Shipping $22.50 Mail handbag to customer
Other expenses $35.00 Supplies, transportation
Total $118.51
Your profit is
Markup − Expenses = 200.00 − 118.51
= $81.49.
So, your markup is not the same as your profit. If you spend 5 hours in
traveling, shopping, Internet use, correspondence, wrapping, and shipping,
then your hourly wage is $16.30.

Checkpoint Help at

A bookstore pays $140 for a textbook and sells it for

$200. The bookstore manager determines that the retail
price of the book is a 30% markup because $60 is
30% of $200. Is this a correct use of the term markup?
Explain your reasoning.

Copyright © Larson Texts, Inc. All rights reserved.

64 Chapter 2 The Mathematics of Consumption

Finding the Discount on an Item

Discount is the difference between the “regular” retail price of an item and the
price that a consumer actually pays for the item.

Finding a Discount
The discount on an item is the difference between the regular retail price and
Study Tip the discounted, or sale, price.
Notice that for markup
percent, the wholesale price Discount = regular price − discounted price
is the base. However, for To find the discount percent, divide the discount by the regular price.
discount percent, the regular
price is the base. discount
Discount percent = —
regular price

Using Discounts and Markup

You work in a clothing store. You order 25 T-shirts in assorted sizes.
The wholesale price of each shirt is $8.37. The regular retail pricee
is $24.99. During the next 2 months, you repeatedly mark
down the price until you finally sell all 25 shirts. Find the
average markup percent for the 25 shirts.

• 13 shirts at $24.99 • 4 shirts at 25% off

• 6 shirts at 50% off • 2 shirts at 75% off

SOLUTION
A spreadsheet works well to organize this problem.
m.

A B C D
Wholesale Regular Discount Discount Quantity
1 Price Price Percent Price Sold Revenue
2 $8.37 $24.99 0.0% $24.99 13 $324.87
3 $8.37 $24.99 25.0% $18.74 4 $74.96
4 $8.37 $24.99 50.0% $12.50 6 $75.00
5 $8.37 $24.99 75.0% $6.25 2 $12.50
6 Total $487.33
7

You paid 25(8.37) = $209.25 for the shirts. Your total markup was
487.33 − 209.25 = $278.08. So, your average markup percent was
Total markup 278.08
—— = — ≈ 1.329 = 132.9%.
Total wholesale price 209.25

Checkpoint Help at

Find the average markup percent for the following sales record.

• 11 shirts at $24.99 • 7 shirts at 25% off

• 3 shirts at 50% off • 4 shirts at 75% off

Copyright © Larson Texts, Inc. All rights reserved.

2.2 Markup & Discount 65

Buying Generic Prescription Drugs

In the United States, prescription drugs are often expensive. You can usually save
money by asking your doctor to prescribe a generic version of a drug. Here are
some sample savings.

Monthly Cost for Monthly Cost for

Condition
Brand-Name Drug Generic Substitute
High blood pressure $128 $13

High ch
cholesterol $95 $37

Depression
De $103 $37

Arthritis pain
Arth $135 $30

Heartburn
H $179 $24

Which of these represents the greatest discount percent?

SOLUTION
A spreadsheet works well to organize the information in this problem.
Discount
Brand Ź Generic Brand

A B C D E
1 Condition Brand Generic Discount Percent
2 High blood pressure $128.00 $13.00 $115.00 89.8%
3 High cholesterol $95.00 $37.00 $58.00 61.1%
4 Depression $103.00 $37.00 $66.00 64.1%
5 Arthritis pain $135.00 $30.00 $105.00 77.8%
6 Heartburn $179.00 $24.00 $155.00 86.6%
7

The greatest discount percent is for the high blood pressure drug.

Checkpoint Help at

Find the discount percents for the three drugs described in the article.

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66 Chapter 2 The Mathematics of Consumption

Finding the Final Price after Multiple Discounts

When you have two discounts on the same item, the final price can depend
on the order in which you calculate the discounts.

Calculating Multiple Discounts

Each da
day in the United States, millions of coupons are distributed by mail,
newspapers, and e-mails. You acquire a coupon for a pair of jeans.
newspap

off
$
10
Any pair of jeans.
Coupon must be presented
at the time of transaction.
Good through June 30, 2012.

A pair of jeans retails for $40 and is being sold at a

store that is having a “25% off” sale on all clothing.

a. What is the final price when you first take 25% off, and then subtract $10?
b. What is the final price when you first subtract $10, and then take 25% off?

SOLUTION
a. Begin by taking 25% off.

Original price 25% discount

40 − 0.25(40) = 40 − 10 = $30
Then use the coupon.

Coupon

30 − 10 = $20
The final price is $20.
b. Begin by using the coupon.
40 − 10 = $30
Then take 25% off.
30 − 0.25(30) = 30 − 7.50 = $22.50
The final price is $22.50.

Checkpoint Help at

Suppose the coupon in Example 5 is for 10% off, rather than $10 off.
Jeans were invented in 1873 by Would the order in which you apply the discounts make a difference
Levi Strauss and Jacob Davis. in the final price? Explain your reasoning.

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2.2 Markup & Discount 67

Using Promotional Codes

A car rental company offers 10% off the cost of any rental car. The company
also sends you an email with a promotional code for 20% off. You decide to use
both discounts to reserve a car online.

Promotional Code:

The regular price for renting a car is $70 per day. What is the final price
after both discounts?

SOLUTION
Begin by taking 10% off.

Original price 10% discount

70 − 0.10(70) = 70 − 7
= $63
Then take 20% off.

Discounted price 20% discount

63 − 0.20(63) = 63 − 12.60
= $50.40

The final price is $50.40.

✓Checkpoint Help at

Use the information in the article to estimate a shopper’s hourly wage for
clipping grocery coupons from newspapers. Explain your reasoning.

Save Money by Using Coupons

In 2009, about 367 billion coupons were distributed in
the United States. Of these, about 3.3 billion coupons
were redeemed.
Studies have shown that shoppers who spend
20 minutes per week clipping coupons can save up to
$1000 per year. That is a 20% savings for a family withh
a $5000 annual grocery bill.

Copyright © Larson Texts, Inc. All rights reserved.

68 Chapter 2 The Mathematics of Consumption

2.2 Exercises
Apparel In Exercises 1– 4, find the markup percent for the item. (See Examples 1 and 2.)

1. 2.

Wholesale: $36
Wholesale: $18
Retail: $65.99
Retail: $40

3. 4.

Wholesale: $12.18
Retail: $19.99 Wholesale: $12.89
Retail: $16.19

5. Necklace The wholesale price for a necklace is $10. The markup percent
is 200%. What is the markup?

6. Watch The wholesale price for a watch is $25. The markup percent is 50%.
What is the retail price?

Copyright © Larson Texts, Inc. All rights reserved.

2.2 Markup & Discount 69

Lawn and Garden You work in the lawn and garden section of a local retail store.
You order 26 garden statues. The wholesale price of each statuee is $35. The regular
retail price is $70. During the next 4 months, you repeatedly mark ark down
the price until you finally sell all 26 statues. In Exercises 7–10, use the
sales record shown. (See Example 3.)

• × 10 at $70 • × 8 at 25% off

• × 5 at 50% off • × 3 at 75% off

7. Find the average markup percent for the 26 statues.

8. Is the revenue from the sale of the 26 garden statues equal to the profit?
Explain your reasoning.

9. Your goal as a businessperson is to make a profit.

rice?
a. How many garden statues did you discount below the wholesale price?
ntory at
b. How can you make a profit when you discount some of your inventory
less than the wholesale price? Explain your reasoning.

atue sales record.

10. Create a spreadsheet similar to the one in Example 3 for the garden statue
Experiment with the numbers in the “Quantity Sold” column. Remember mber that the total
number of garden statues is 26.

A B C D E F
1 Wholesale Regular Discount Discount Quantity
1 Price Price Percent Price Sold Revenue
2 $35.00 $70.00 0.0% $70.00 10 $700.00
3 $35.00 $70.00 25.0% $52.50 8 $420.00
4 $35.00 $70.00 50.0% $35.00 5 $175.00
5 $35.00 $70.00 75.0% $17.50 3 $52.50
6 Total $1,347.50
7

a. Find four values such that the revenue is greater than the cost.
(Cost = number of garden statues purchased × wholesale price)
b. Find four values such that the revenue is less than the cost.
c. Explain why you need to know this information to make a profit.

Cereal In Exercises 11 and 12, find the discount percent for the generic cereal. (See Example 4.)
11. 12.

vs.
vs.

Generic Brand Name

Generic Brand Name
$1.99 $5.29
$2.39 $2.99

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70 Chapter 2 The Mathematics of Consumption

Television You are purchasing a television from an electronics store. The

television retails for $380, and the store is having a “15% off” sale on all
items. In Exercises 13 and 14, use this information. (See Example 5.)
13. You have the coupon shown.

OFF any purchase over $250

In-store code
3645669

Limit 1 per customer Use by Dec. 31, 2013

15$%380
OFF
RETAIL
PRICE

a. What is the final price when you first take 15% off, and then
subtract $25?
b. What is the final price when you first subtract $25, and then
take 15% off?
14. You have the coupon shown.

purchases $200–$499.99

a. What is the final price when you first take 15% off, and then subtract $20?
b. What is the final price when you first subtract $20, and then take 15% off?
c. Suppose the coupon is for 20% off, rather than for $20 off. What is the
final price when you use the coupon with the sale?

Footwear A shoe store sends you a promotional code that you can
use for a discount. In Exercises 15 and 16, use the information in
the coupon. (See Example 6.)
15.
Use the promotional code on this coupon to receive your discount.
e
promo cod

with promotional code without promotional code

a. What is the percent discount?

b. The store is having a “60% off” sale on all items. What is the
final price when you use the promotional code with the sale?

16.

UUse the
h promotional
i l code
d on this
hi coupon to receive
i your di
discount.
e
promo cod

with promotional code without promotional code

aa. What is the percent discount?

b The store is having a “50% off” sale on all items. What is the
b.
final price when you use the promotional code with the sale?
Copyright © Larson Texts, Inc. All rights reserved.
2.2 Markup & Discount 71

Extending Concepts
Energy Drink In Exercises 17–20, use the display.

Cost Analysis of an Energy Drink

$3.50 Retail price

$3.00 Distributor price

$2.50 Manufacturer price

$1.00 Cost of materials

17. What is the markup percent from the manufacturer price to the retail price?

18. What is the markup percent from the distributor price to the retail price?

19. You buy one energy drink. You have a coupon for $0.75 off. What is
the discount percent?

20. Suppose the store marks up the energy drink to $3.25 instead of
$3.50. What is the markup percent from the distributor price to
the retail price?

21. Clearance A store advertises that it is having a “30% off” sale

on all items, with an additional 20% off clearance items. The
additional 20% is taken off after the 30% discount is applied.
You are buying a spice rack that is on clearance. The regular
price of the spice rack is $30.

a. What is the total discount?

b. What is the total discount percent?
c. Why do you think the store advertises its sale using
two discount percents instead of one? Explain.

22. Customer Service You work at a store that is having a “50% off”
sale. A customer has a coupon for 50% off any item and thinks
that a $40 sweater should be free with the coupon. How would you
explain why the sweater is not 100% off? Explain your reasoning.

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72 Chapter 2 The Mathematics of Consumption

2.1–2.2 Quiz

Liquid Hand Soap In Exercises 1–5, use the information below.

Brand A Brand B Brand C

19.95 fl oz 32 fl oz
7.5 fl oz $2.39 $2.99
$1.99

Vanilla Bean Hand Soap

refill

1. Compare the unit prices of the three brands of liquid hand soap.

2. A family of 4 uses 128 fluid ounces of liquid hand soap annually. Suppose the family
purchases brand C instead of brand A. Estimate the annual savings for the family.

3. The wholesale price of brand A is $0.99.

a. Find the markup.
b. Find the markup percent.

4. You have a coupon for 10% off brand B.

a. How much can you expect to pay for brand B?
lain your reasoning.
b. How does the coupon affect the unit price of brand B? Explain
c. Does brand B give you the most hand soap for your money after you use
the coupon? Explain your reasoning.

5. Below is a recipe for homemade liquid hand soap.

a. What is the unit price of the homemade liquid hand soap?

b. You make your own liquid hand soap instead of buying brand C. What is the discount percent?

Copyright © Larson Texts, Inc. All rights reserved.

Chapter
p 2 Project
j Math & Currency
y 73

Math & Currency

PROJECT: How Should I Exchange Currency?

1. You are traveling from the United States to Europe and plan to take $2000 in cash. You are
trying to decide the best way to do this. To start, you use the Universal Currency Converter ®*
at [Link]. Using the converter, how many euros will you receive for $2000 (USD)?

Universal Currency Converter

Convert: From this currency: To this currency:
1 Dutch (Netherlands) Guilders - NLG* United States Dollars - USD
Enter an amount Eastern Caribbean Dollars - XCD Euro - EUR
Egypt Pounds - EGP United Kingdom Pounds - GBP
Estonia Krooni - EEK* Canada Dollars - CAD
Euro - EUR Australia Dollars - AUD
More currencies More currencies

Converter Results

In Exercise 2, use the websites for the following to complete parts (a)–(f).

• local bank
• airport currency exchange company
• credit card company
• foreign bank

2. Which method of exchanging currency is the least costly?

a. Exchange your dollars for euros at your local bank.
b. Exchange your dollars for euros at the airport.
c. Use your credit card to make purchases in Europe.
d. Exchange your dollars for euros at a bank in the country
you are visiting.
e. Buy traveler’s checks at your local bank. Then exchange the
traveler’s checks for euros at a bank in the country you
are visiting.
f. Use an ATM in the country you are visiting.

3. Using the methods in Exercise 2, will you receive as many euros as

the Universal Currency Converter ® indicates? If not, why?
*Provided by [Link]
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74 Chapter 2 The Mathematics of Consumption

2.3 Consumption Taxes

Find the sales tax on an item.
Find the excise tax on an item.
Find the value-added tax on an item.
The Federalist No. 21
“It is a signal advantage Finding the Sales Tax on an Item
of taxes on articles of A consumption tax is a tax on spending. There are three basic types of
consumption, that they contain consumption taxes: sales tax, excise tax, and value-added tax.
in their own nature a security
against excess. They prescribe Consumption taxes do not tax savings, income, or property. Although
their own limit; which cannot personal and corporate income taxes provide most of the revenue to the federal
be exceeded without defeating government, consumption taxes are a primary source of income for state and local
the end proposed, that is, an governments. The United States implemented consumption taxes much earlier
extension of the revenue. . . . If than income taxes. The paragraph at the left was written by Alexander Hamilton
duties are too high, they lessen in the Federalist Papers in 1787.
the consumption; the collection
is eluded; and the product to the Finding Sales Tax
treasury is not so great as when
they are confined within proper In the United States, sales tax rates vary greatly. Several states have no sales tax.
and moderate bounds.” There are states in which cities and counties have sales taxes, which are added on
to state sales taxes. Find the sales tax on each item.
Alexander Hamilton
a. Yacht: $214,000 b. Sports car: $65,900
Sales tax: 8% Sales tax: 7%

Study Tip
In Example 1a, you can
estimate the sales tax to
SOLUTION
be “a little less than 10%.”
Because 10% of $214,000
is $21,400, a sales tax of Retail price 8% tax rate Retail price 7% tax rate
$17,120 is reasonable.
a. 214,000(0.08) = $17,120 b. 65,900(0.07) = $4613
The sales tax is $17,120. The sales tax is $4613.

Checkpoint Help at

Find the sales tax on each item.

c. High heel shoes: $250 d. Watch: $1350
Sales tax: 6% Sales tax: 7.4%

Copyright © Larson Texts, Inc. All rights reserved.

2.3 Consumption Taxes 75

Sales tax has become a quagmire of rules, misconceptions, tax forms,

legislation, and legal battles. The basic problem is that the United States has
thousands of sales tax jurisdictions (counting states, counties, and cities). Most
jurisdictions interpret sales tax law to mean that a resident of the jurisdiction must
pay sales tax on each item the resident purchases, regardless of where the item
is purchased.
For instance, if you live in Washington State (which has sales tax) and
purchase an item in Oregon (which has no sales tax), Washington expects you to
report your purchase and pay sales tax. Even more common is the issue of Internet
sales. If you run an Internet business, then you might have to collect and report
sales tax when someone purchases an item from you.

Finding a Sales Tax Rate

You purchase a jacket in an airport mall. You are
unfamiliar with the sales tax rates in the area. You are
given the sales receipt shown at the left. Find the sales
tax rates indicated by the receipt.

SOLUTION
For sales tax, the retail price is always the base.

City sales tax

1.36
— ≈ 0.01 = 1%
135.95
Retail price

The city has a sales tax rate of about 1%.

County sales tax 4.35

— ≈ 0.032 = 3.2%
135.95
Retail price

The county has a sales tax rate of about 3.2%.

State sales tax

9.25
— ≈ 0.068 = 6.8%
135.95
Retail price

The state has a sales tax rate of about 6.8%.

Checkpoint Help at

a. Suppose that Washington State loses the sales tax on 10,000 major
appliances that are purchased in Oregon each year. The sales tax rate
in Washington is 6.5%. Estimate the loss in tax revenue from these sales.
b. Suppose that each person in the United States avoids paying $500 in sales
tax each year (by buying out of state, buying on the Internet, or buying at
informal outlets such as garage sales). Estimate the total sales tax revenue
lost each year.

Copyright © Larson Texts, Inc. All rights reserved.

76 Chapter 2 The Mathematics of Consumption

Finding the Excise Tax on an Item

There are many types of excise taxes. The most common excise tax applies to
a specific class of goods, typically alcohol, gasoline, cigarettes, and gambling.
Rather than being a certain percent, excise taxes are often a fixed dollar amount.
For instance, a state might charge $1 per gallon of gasoline or $2 per pack of
cigarettes. The tax is reported to the consumer as part of the retail price. For
instance, when gasoline is reported as $2.94 per gallon, this price includes any
state or federal excise tax on the gasoline.

The first federal excise tax in the United States was levied in 1791 on distilled
whiskey. The tax was unpopular with farmers on the western frontier who got their
corn to market by distilling it into whiskey. The unpopularity of the tax grew into a
revolt known as the Whiskey Rebellion.

Estimating Excise Tax

Estimate the amount of excise tax generated by cigarette sales each year in
the United States.

SOLUTION
This is not an easy question, but you can still come up with a reasonable
estimate. Assume the following.

• There are about 230 million people who are 18 years old or older.
• Of these, about 20% smoke cigarettes.
• A cigarette smoker smokes one pack per day.
Excise taxes on tobacco, alcohol, • State and federal excise taxes total about $2.50 per pack.
and gambling are sometimes With these assumptions, you can obtain the following estimate.
called “sin taxes.”

( )( )(
1 pack
(230,000,000)(0.20) — — — = ——
day
$2.50
pack
365 days
year ) $41,975,000,000
year

So, a reasonable estimate for the revenue generated by state and federal excise
taxes on cigarettes is about $40 billion.

Checkpoint Help at

The United States uses about 140 billion gallons of gasoline in a year. Estimate the
amount of excise tax generated by gasoline sales each year in the United States.
Copyright © Larson Texts, Inc. All rights reserved.
2.3 Consumption Taxes 77

Finding Changes in Excise Taxes

The graph shows the total excise tax revenue (actual and projected) that the
U.S. federal government raises.

Total Federal Excise Taxes in the United States

100

Amount (billions of dollars)

90

$87,829,000,000
80
70

$73,961,000,000
60

$62,483,000,000
50
40
30
20
10
0
2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015
Year

a. How much did the revenue decline from 2006 to 2009?

b. Why did the revenue decline during those years?

SOLUTION

a. From 2006 to 2009, the revenue declined by

73,961,000,000 − 62,483,000,000 = $11,478,000,000.
This is a decline of about 15.5%.

b. One cause for the decline in revenue was an economic recession

that began in 2007. There was, however, a less obvious cause.
In 1898, the U.S. federal government implemented the first
telephone excise tax in an effort to help fund the Spanish-American
war. In 2005, a federal court declared it illegal to tax long-distance
telephone services, a decision that cost the federal government
billions of dollars in revenue.
The Telephone Excise Tax
Refund was a onetime
payment available on the Checkpoint Help at
2006 federal income tax return.
It refunded excise taxes Use the graph above to answer the questions.
collected on long-distance
telephone services billed c. How much is the revenue projected to increase from 2009 to 2015?
between February 28, 2003,
d. What is the percent increase, using 2009 as the base year?
and August 1, 2006. Most
phone customers, including e. Suppose you are asked to devise a plan to raise the total excise tax revenue to
most cell phone users, $250 billion by 2015. Describe such a plan and explain why you think it could
qualified for the refund. raise the necessary tax revenue.

Copyright © Larson Texts, Inc. All rights reserved.

78 Chapter 2 The Mathematics of Consumption

Value-Added Tax
A value-added tax (VAT) is a consumption tax. It is a tax on the market value that
is added to a product or material at each stage of its manufacture or distribution.
The tax is passed on to the consumer because it increases the ultimate retail price
of the product. Value-added taxes differ from sales taxes because sales taxes are
applied only at the point of purchase.
As of the writing of this text, the United States does not have a value-added
tax. It has been considered by Congress but has always been rejected. Several
other countries, including Canada, do have value-added taxes.
Proponents of value-added taxes argue that they inhibit consumer spending less
than sales taxes, because they are hidden in the final retail price of the product.

Comparing Sales Tax and Value-Added Tax

During the production of a sheepskin coat, value is added by the following.

• A farmer: $10
• A leather tanning company: $25
• A coat making company: $150
• A retail clothing company: $210
Compare the effect of (a) a sales tax of 10% and (b) a valued-added tax of 10%.

SOLUTION
aa. A sales tax of 10% is straightforward and easy to calculate. No consumption
taxes are paid until the coat is sold to the consumer.
Sales tax = (0.10)(10 + 25 + 150 + 210) = $39.50
The consumer pays $434.50, of which $39.50 is sales tax.
b
b. Following the trail of a value-added tax is more complicated. A spreadsheet
p keep track of the value-added tax at each stage.
helps

A B C D
Current Value 10% Value- New
1 Value Added Added Tax Value
2 $0.00 $10.00 $1.00 $11.00
3 $11.00 $25.00 $2.50 $38.50
4 $38.50 $150.00 $15.00 $203.50
5 $203.50 $210.00 $21.00 $434.50
The
Th rules
l for
f collecting
ll ti andd
6 Total $395.00 $39.50
paying a value-added tax vary.
7
However, as you can see in
Example 5, value-added taxes
involve more paperwork. The total tax is the same: $39.50.

Checkpoint Help at

In the example above, compare the effects of (a) a sales tax of 8% and
(b) a value-added tax of 8%.

Copyright © Larson Texts, Inc. All rights reserved.

2.3 Consumption Taxes 79

Comparing Tax Revenue Sources

The stacked area graph shows the sources of tax revenue for the
U.S. federal government.

Sources of Tax Revenue for the U.S. Federal Government

100
Since 1950, excise taxes have 90 Excise taxes
become a smaller and smaller Other
80
percent of the total tax Payroll taxes
revenue for the federal 70

government. Percent 60
Corporate income tax
50
40
30
20 Individual income tax
10
0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Year

Describe the changes in the types of taxes from 1950 to 2010.

SOLUTION
Individual income tax This source of tax revenue has held roughly constant
during the 60-year period. It makes up about 45% of the total tax revenue.

Corporate income tax This source of tax revenue declined from about 30%
in 1950 to about 10% in 1985. From that time on, it has held fairly steady at
about 10%.

Payroll taxes This source of tax revenue increased from about 10% in 1950
to about 35% in 1985. From that time on, it has held fairly steady at about 35%.

Excise taxes This source of tax revenue decreased from about 20% in 1950
State and Local Taxes to only about 3% in 2010.
in California
Other This source of tax revenue has held roughly constant during the 60-year
period. It makes up about 5% of the total tax revenue.
Sales tax
$45 billion Checkpoint Help at

Individual
The circle graph shows the total tax revenue for state and local governments
income tax Property tax in California during a recent year.
$52 billion $42 billion
a. Compare the percent of California’s tax revenue raised from individual
income taxes with the percent of federal tax revenue raised from
individual income taxes.
b. Compare the percent of California’s tax revenue raised from corporate
Corporate Other
income taxes with the percent of federal tax revenue raised from
income tax $20 billion
corporate income taxes.
$11 billion
Copyright © Larson Texts, Inc. All rights reserved.
80 Chapter 2 The Mathematics of Consumption

2.3 Exercises
Oil Painting In Exercises 1– 6, use the table and the oil painting shown. (See Examples 1 and 2.)

U.S. State Sales Tax Rates (%) in 2010

New South
Alabama 4.0 Hawaii nil Massachusetts 6.25 5.0 4.0
Mexico Dakota
Alaska nil Idaho 6.0 Michigan 6.0 New York 4.0 Tennessee 7.0
North
Arizona 5.6 Illinois 6.25 Minnesota 6.875 5.75 Texas 6.25
Carolina
North
Arkansas 6.0 Indiana 7.0 Mississippi 7.0 5.0 Utah 4.7
Dakota
California 8.25 Iowa 6.0 Missouri 4.225 Ohio 5.5 Vermont 6.0

Colorado 2.9 Kansas 5.3 Montana nil Oklahoma 4.5 Virginia 5.0

Connecticut 6.0 Kentucky 6.0 Nebraska 5.5 Oregon nil Washington 6.5

West
Delaware nil Louisiana 4.0 Nevada 6.85 Pennsylvania 6.0 6.0
Virginia
New Rhode
Florida 6.0 Maine 5.0 nil 7.0 Wisconsin 5.0
Hampshire Island
South
Georgia 4.0 Maryland 6.0 New Jersey 7.0 6.0 Wyoming 4.0
Carolina

1. You buy the oil painting in an art gallery in

California. What is the state sales tax?
2. You buy the oil painting in an art gallery in
Missouri. What is the state sales tax?
3. You buy the oil painting in Washington, D.C. The
sales receipt shows that you paid $75.54 in sales
tax. What is the sales tax rate in Washington, D.C.?
4. You buy the oil painting in New York. The sales
receipt shows that you paid $88.13 in county
sales tax. What is the county sales tax rate?
5. You can buy the oil painting in Mississippi or drive
20 miles to an art gallery in Alabama to make the
purchase. Which option would you choose?
Oil painting: $1259.00
Explain your reasoning.
6. Under what conditions is it beneficial to a consumer to drive to another state to make a purchase?
Give specific examples.

T-shirt $25.00 7. T-shirt You are given the sales receipt shown after buying a T-shirt.
Find the sales tax rates indicated by the receipt. (See Example 2.)
SUBTOTAL: $25.00
Sales tax city: $ 0.30
8. Internet Sales Some people avoid paying sales tax by purchasing
Sales tax state: $ 1.50
items out of state. This is a big problem for many states. What would
TOTAL: $26.80
you do as a state legislator to fix the problem?
- - THANK YOU - -
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2.3 Consumption Taxes 81

Beer Tax In Exercises 9–13, use the information in the map. (See Examples 3 and 4.)

State Excise Tax Rates on Beer

As of January 1, 2009
WA
(dollars per gallon)
26¢ NH
VT 30¢ ME
MT ND 26.5¢ 35¢
14¢ 16¢
OR MN
8.39¢ ID 15¢ MA 11¢
SD WI NY
15¢ 11¢
WY 27¢ 6¢ MI
20¢ RI 11¢
1.9¢
IA PA CT 20¢
NV NE 19¢ 8¢ NJ 12¢
31¢ OH
16¢ UT IL IN 18¢ DE 16¢
41¢ CO 18.5¢ 11.5¢ WV MD 9¢
CA VA
20¢ 8¢ KS MO KY 18¢
25.65¢
18¢ 6¢ 10¢
NC 53¢
AZ OK TN 14¢
16¢ NM 40¢ AR SC
41¢ 21¢ 76.8¢
GA
AL
MS $1.05 $1.01
TX LA 42.7¢
AK 20¢ 32¢
$1.07
FL
48¢

Notes LEGEND
One keg â 15.5 gallons 40¢ or more per gallon
One six-pack â 0.5625 gallon 13¢ to 39¢ per gallon
HI The federal excise tax on
93¢ 12¢ or less per gallon
beer is $0.58 per gallon.

9. In which state is the excise tax rate on beer the least?

the greatest?

10. What is the state excise tax on a keg of beer in Georgia?

in Idaho?

11. What is the state excise tax on a 6-pack of beer in Alaska?

12. A customer in Florida buys a 12-pack of beer. How

much does the customer pay in federal and state
excise taxes?

13. A bar manager in South Carolina purchases a keg of beer

for $110.00. What percent of the cost is allocated to federal
and state excise taxes?

14. Excise Tax vs. Sales Tax How is an excise tax

different from a sales tax? Explain your reasoning.

Copyright © Larson Texts, Inc. All rights reserved.

82 Chapter 2 The Mathematics of Consumption

Car Manufacturing In Exercises 15–17, use the information below. (See Example 5.)
During the production of a car, value is added
by the following.

• Raw materials manufacturers: $7000

• A car manufacturer: $11,000
• A car dealer: $5000
15. The sales tax rate is 6.0%. What is the sales tax on the car?

16. Use the spreadsheet to find the value-added tax of 6% at each

stage. Compare the value-added tax of 6% with a sales tax of 6%.

A B C D E
Current Value 6% Value- New
1 Value Added Added Tax Value
2 Raw materials $0.00 $7,000.00 $7,420.00
3 Manufacturer $7,420.00
4 Dealer
5 Total
6

17. Using the value-added tax approach, what is the retail price of the car?

Truck Manufacturing In Exercises 18–20, use the information below. (See Example 5.)
During the production of a truck, value is added by the following.
• Raw materials manufacturers: $11,000
• A truck manufacturer: $16,000
• A truck dealer: $7000
18. The sales tax rate is 8.25%. What is the sales tax on the truck?

19. Use a spreadsheet to find the value-added tax of 8.25% at each stage. Compare the
value-added tax of 8.25% to a sales tax of 8.25%.

20. Using the value-added tax approach, International Gasoline Prices

what is the retail price of the truck? (Nov. 2010)
8.00
U.S. dollars per gallon

7.00 Taxes
4.28 4.54 4.09 4.58
Gasoline The graph shows the prices of 6.00 Other
3.22 2.85
gasoline in eight countries. In Exercises 21 5.00
and 22, use the graph. (See Example 6.) 4.00
1.23 0.41
3.00
21. Use percent to compare the taxes 2.99 2.90 3.21
2.00 2.73 2.70 2.59 2.79 2.46
collected per gallon of gasoline in 1.00
the United States with those collected 0.00
in Germany.
e

ly

om

e s
an
c

ad
ai

pa
Ita

at
an

Sp

d
m

n
Ja

St
ng
Fr

Ca
er

d
Ki
G

te

22. Describe any patterns you see in

d

ni
te

U
ni

the graph.
U

Country

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2.3 Consumption Taxes 83

Extending Concepts
Sunglasses In Exercises 23 and 24, use the sales receipt.
23. While on vacation in Florida, you buy a pair of
sunglasses for the beach. The state sales tax rate in
Florida is 6%. What is the local sales tax rate?

24. Your friend loves the sunglasses you bought while

on vacation in Florida. She decides to buy the same
pair of sunglasses from the Ray’s Beachwear website.
What might be the total cost for her order? Explain.

25. Exempt Some items are not subject to sales tax in certain tax
jurisdictions. The rules for exempt status can vary greatly from
state to state. The state sales tax rate applied on the sales receipt
shown at the right is 6%. Which item is exempt from sales tax?

26. Other Excise Taxes One of the main purposes of an excise tax
is to discourage certain behavior. Name one item or service
(not listed in this text) that you think should have an excise tax.
Explain how you would define the tax structure, including the rate.

27. Dining Room Table Set The value-added tax spreadsheet shows each stage of the
production of a dining room table set. Complete the spreadsheet. What is the tax rate?

A B C D E
Current Value Value- New
1 Value Added Added Tax Value
2 Raw materials $0.00 $1,200.00
3 Manufacturer $1,290.00 $2,300.00
4 Finisher $3,762.50 $500.00
5 Retailer $4,300.00 $1,400.00
6 Total $5,400.00

28. National Sales Tax There has been some discussion

about whether the United States should implement a
national sales tax in addition to existing state and
local sales taxes. Suppose you are entering a debate
about a national sales tax. Use the Internet to research
the topic. Would you be in ffavor off or opposed
pp to a
national sales tax? Expla
Explain
ain
i your reasoning.
i

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84 Chapter 2 The Mathematics of Consumption

2.4 Budgeting
Create and balance a monthly budget.
Write checks and balance a checkbook.
Analyze a budget.

Creating and Balancing a Monthly Budget

A personal monthly budget is a plan that includes your income and your expenses.
Here are some tips for creating a meaningful budget.

• If you have bills that are due quarterly, semiannually, or annually,

include a monthly average in your monthly budget.
• Include a savings goal in your budget. Saving for a goal is not only
smart financially, it is smart emotionally.
• Leave some leeway in your budget for unexpected expenses.
• Keep your budget in a paper or an electronic journal. Save your
receipts. Do not fall behind on entering expenses in your budget.

Comparing Budgeted and Actual Expenses

Find the difference between the actual amounts and the budgeted amounts.

MONTHLY MONTHLY
CATEGORY ACTUAL BUDGETED DIFFERENCE
AMOUNT AMOUNT
Food
Groceries $287.60 $300.00
Eating out, lunches, snacks $234.86 $200.00
Health and Medical
Insurance (medical, dental, vision) $165.00 $165.00

SOLUTION
For each row, subtract the budgeted amount from the actual amount.
Study Tip
Groceries: 287.60 − 300.00 = −$12.40
When the actual amount
Eating Out: 234.86 − 200.00 = $34.86
is less than the budgeted
amount, the difference is a Insurance: 165.00 − 165.00 = $0.00
negative number. In
accounting, negative
numbers are often indicated Checkpoint Help at
by parentheses and shown
in red. For instance, −$12.40 Find the difference between the actual amounts and the budgeted amounts.
is written as ($12.40).
MONTHLY MONTHLY
CATEGORY ACTUAL BUDGETED DIFFERENCE
AMOUNT AMOUNT
Utilities
Electricity $121.46 $125.00
Water and sewer $62.30 $58.00

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2.4 Budgeting 85

Balancing a Monthly Budget

Use the monthly budget form to find your total actual expenses. Compare your
total actual expenses with your total budgeted expenses.

MONTHLY MONTHLY
CATEGORY
CA ACTUAL BUDGETED DIFFERENCE
AMOUNT AMOUNT

Study Tip INCOME $5500.00 $5500.00 $0.00

Income Taxes Withheld
A negative number means
Federal income tax $1100.00 $1100.00 $0.00
you are under budget. So, it
is “good” to have negative State and local income tax $225.00 $225.00 $0.00
numbers for expense Social Security/Medicare tax $412.50 $412.50 $0.00
differences, but “bad” to Spendable Income $3762.50 $3762.50 $0.00
have negative numbers for EXPENSES
income differences. Home
Mortgage or rent $455.00 $455.00 $0.00
Homeowners/renters insurance $95.00 $95.00 $0.00
Property taxes $234.00 $234.00 $0.00
Utilities
Electricity $121.46 $125.00 −$3.54
Water and sewer $62.30 $58.00 $4.30
Natural gas $158.16 $200.00 −$41.84
Telephone (landline, cell) $138.92 $125.00 $13.92
Food
Groceries $287.60 $300.00 −$12.40
Eating out, lunches, snacks $234.86 $200.00 $34.86
Health and Medical
Insurance (medical, dental, vision) $165.00 $165.00 $0.00
Medical expenses, co-pays $0.00 $200.00 −$200.00
Transportation
Car payments $175.00 $175.00 $0.00
Gasoline/oil $48.23 $60.00 −$11.77
Auto repairs/maintenance/fees $0.00 $50.00 −$50.00
Auto insurance $125.00 $125.00 $0.00
Debt Payments $253.48 $253.48 $0.00
Entertainment/Recreation $124.50 $150.00 −$25.50
Clothing $0.00 $50.00 −$50.00
Investments and Savings $125.00 $125.00 $0.00
Miscellaneous $93.50 $200.00 −$106.50
Total Expenses $3345.48

SOLUTION
The total of your actual expenses is $2897.01. So, you spent
3345.48 − 2897.01 = $448.47 less than what you budgeted.

Checkpoint Help at

Complete the “difference” column of the monthly budget form. Explain how
you can use the total in this column to check the total in the “actual” column.

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86 Chapter 2 The Mathematics of Consumption

Writing Checks and Balancing a Checkbook

A check is a written order directing a bank to pay money. Checks are written
on preprinted forms as shown.

Write the dollar amount

of the check. Use words for
whole dollars and a fraction Write the name of the
for cents, such as 45/100 person or company who
for $0.45. is receiving the check.
Write the date.

Write the dollar

amount using
numbers.
Use this part of the check as a
reminder of what you are paying for. Sign your name.
Do not print.

Checkbooks come with a registry so that you

can keep track of each transaction in your checking account.

Keeping a Checkbook Registry

Find the balance in your checking account as of 5/11/12.
Fin

Date
D Check # Transaction Credit Debit Balance
Balance Forward 100.00
5/
5/11/12 996 Grocery Store 29.55
5/11/12
5/ Deposit Paycheck 482.75
5/
5/16/12 ATM Withdrawal 100.00
5/
5/17/12 997 Gym Membership 22.35
5/
5/17/12 998 Cell Phone Company 58.00
5/
5/17/12 999 Car Payment 82.66
5/18/12
5/ Deposit Paycheck 501.50
5/18/12 1000 Birthday Gift 41.28

SOLUTION
ti 100.00 Ź 29.55 â $70.45
Date
D Check # Transaction
Tran
nss a cti
c on Credit
Cre dit Debit
Deb
De bit Balance
Balance Forward 100.00
5
5/11/12 996
70.45 à 482.75 â $553.20
Grocery Store 29.55 70.45
5/11/12
5 Deposit
D it Paycheck
P h k 48
482.75 553.20

The balance as of 5/11/12 is $553.20.

Checkpoint Help at

Find the balance in your checking account as of 5/18/12.

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2.4 Budgeting 87

A bad check is a check that is written for an amount that is greater than the
balance in the checking account. A bad check is also called an insufficient funds
check or a bounced check. Many banks charge penalties for writing bad checks.
These penalties can be significant and can result in numerous problems.
In addition to bank and possible vendor penalties, writing a bad check is
illegal. The penalty varies by state but can involve a fine and a prison term.
Whether the state takes legal action usually depends on whether a person
intentionally or accidentally writes a bad check.

Calculating Bad Check Penalties

You forget to record an ATM withdrawal of $100 (5/20/12) in your checkbook
registry. This causes three checks to “bounce.” Your bank charges $50 for each
bounced check. You think the balance in your account as of 5/23/12 is $2.63.
What is the actual balance after the bad check penalties are deducted?

Date Check # Transaction Credit Debit Balance

Balance Forward 332.85
5/20/12 406 Cell Phone Company 219.45 113.40
5/23/12 407 Pharmacy 23.56 89.84
5/23/12 408 Electric Company 48.67 41.17
5/23/12 409 Credit Card Payment 38.54 2.63
Some common reasons overdrafts
occur are errors in an account
register, failure to enter ATM or
debit card transactions in a register,
and temporary holds on deposits. SOLUTION
After the penalties are deducted, your checkbook registry will look like this.

D
Date Check # Transaction Credit Debit Balance
Balance Forward 332.85
5/20/12 ATM Withdrawal 100.00 232.85
Returned to 5/20/12 406 Cell Phone Company 219.45 13.40
vendor, not paid. 5/23/12 407 Pharmacy 23.56 13.40
5/23/12 Insufficient Funds Penalty 50.00 −36.60
Returned to
5/23/12 408 Electric Company 48.67 −36.60
vendor, not paid.
5/23/12 Insufficient Funds Penalty 50.00 −86.60
Returned to 5/23/12 409 Credit Card Payment 38.54 −86.60
vendor, not paid. 5/23/12 Insufficient Funds Penalty 50.00 −136.60

The actual balance in your account is −$136.60.

Checkpoint Help at

Suppose that each vendor in Example 4 also charges $25 for a bounced check.
How much does forgetting to record your ATM withdrawal cost you?

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88 Chapter 2 The Mathematics of Consumption

Analyzing a Budget

Analyzing Annual Expenses

The circle graph shows the average annual expenses for a U.S. household,
according to the Department of Labor. What percent of the expenses are
spent on taxes and shelter?

SOLUTION
Average Annual Expenses for a U.S. Household

Miscellaneous:
M $1741 Taxes: $2104
Contributions: $1723
Entertainment: $2693

Eating out: $2619 Vehicle:

$5193 Fuel: $1986
Other
transportation:
$479
Groceries:
$3753

Personal insurance Shelter: $10,075

and pensions:
$5471

Education: $1068 Utilities:

Clothing: $1725 $3645
Personal care: $596
Health care: $3126 Household expenses: $1670
Household furnishings: $1506

The total of the expenses is $51,173.

Taxes + Shelter 2104 + 10,075

—— = ——
Total expenses 51,173
≈ 0.238
= 23.8%

The average household spends about 23.8% on taxes and shelter.

In the Department of Labor’s

survey, the average household Checkpoint Help at
had 2.5 members and
1.3 wage earners. What percent of the expenses are spent on transportation? on food?

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2.4 Budgeting 89

When you apply for a home mortgage, the lender will use your gross monthly
income and expenses to calculate your debt-to-income ratio. There are often
two qualifying measures, called the 28/36 rules.

• 28% Rule: The ratio of your monthly mortgage (including loan payment,
property taxes, and insurance) to your gross monthly income is expected to
not exceed 28%.
Monthly mortgage
—— ≤ 28%
Gross monthly income

• 36% Rule: The ratio of your total monthly debt payments (including
mortgage, credit card minimum payments, loans, and all other debts) to
your gross monthly income is expected to not exceed 36%.
Monthly debt payments
—— ≤ 36%
Gross monthly income

Qualifying for a Home Mortgage

You are considering buying a home for $325,000. After your down payment,
the monthly mortgage payment (including property taxes and insurance)
would be $1450.00. Your gross annual income is $63,000, and you already
have a monthly car payment and a monthly credit card payment totaling
$250. According to the 28/36 rules, do you qualify for the home mortgage?

SOLUTION
Your gross monthly income is $63,000/12 = $5250.
Monthly mortgage 1450
28% Rule: —— = —
Gross monthly income 5250

≈ 0.276
= 27.6%

Monthly debt payments 1450 + 250

36% Rule: —— = —
Gross monthly income 5250

≈ 0.324
= 32.4%

Both of your debt-to-income ratios are in the acceptable range, so you do

qualify for the home mortgage.

Checkpoint Help at

You are considering buying a home for $425,000. After your down payment,
the monthly mortgage payment (including property taxes and insurance)
would be $1950.00. Your gross annual income is $73,000, and you already
have a monthly car payment and a monthly credit card payment totaling
$450. According to the 28/36 rules, do you qualify for the home mortgage?

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90 Chapter 2 The Mathematics of Consumption

2.4 Exercises
Monthly Budget In Exercises 1–7, balance the monthly budget by entering the
correct amount in the green cells. (See Examples 1 and 2.)

MONTHLY MONTHLY
CATEGORY ACTUAL BUDGETED DIFFERENCE
AMOUNT AMOUNT
1. INCOME $4500.00 $4500.00
Payroll Deductions
Insurance (medical, dental, vision) $145.00 $145.00 $0.00
2. Retirement/401(k) $225.00 $0.00
Federal income tax $560.00 $560.00 $0.00
State and local income tax $180.00 $180.00 $0.00
Social Security/Medicare tax $335.00 $335.00 $0.00
Total Deductions $1445.00 $1445.00 $0.00
3. Net Income $3055.00 $0.00
EXPENSES
Home
Mortgage or rent $760.00 $760.00 $0.00
Homeowners/renters insurance $15.00 $15.00 $0.00
Property taxes $0.00 $0.00 $0.00
Utilities
Electricity $107.26 $95.00 $12.26
Water and sewer $30.00 $30.00 $0.00
Natural gas $110.00 $110.00 $0.00
Telephone (landline, cell) $110.97 $115.00 ($4.03)
Food
4. Groceries $268.34 $300.00
Eating out, lunches, snacks $315.45 $250.00 $65.45
Transportation
Car payments $384.00 $384.00 $0.00
5. Gasoline/oil $75.00 ($5.50)
Auto insurance $115.00 $115.00 $0.00
Auto repairs/maintenance/fees $0.00 $20.00 ($20.00)
6. Credit Cards $45.00 $55.00
7. Entertainment/Recreation $205.75 ($44.25)
Clothing $0.00 $50.00 ($50.00)
Investments and Savings $200.00 $200.00 $0.00
Miscellaneous $142.54 $200.00 ($57.46)

Total Expenses $2933.81 $3014.00 ($80.19)

8. Expenses Interpret the difference between the actual and the budgeted total expenses.
(See Example 2.)

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2.4 Budgeting 91

Checkbook In Exercises 9–14, use your checkbook registry shown. (See Examples 3 and 4.)

Date Check # Transaction Credit Debit Balance

Balance Forward 520.25
6/24/12 214 Shoe Store 89.99
6/25/12 ATM Withdrawal 50.00
6/26/12 ATM Deposit 160.00
6/27/12 215 Grocery Store 110.59
6/29/12 Direct Deposit Paycheck 452.17
6/30/12 216 Rent 450.00
7/2/12 218 Car Payment 325.15
7/2/12 219 Electric Company 62.38
7/3/12 ATM Deposit 65.00
7/3/12 220 Cell Phone Company 127.16
7/6/12 Direct Deposit Paycheck 452.17
7/8/12 221 Credit Card Payment 85.00

9. Find the balance in your checking account as of 6/26/12.

10. Find the balance in your checking account as of 6/30/12.

11. Are there any bad checks shown in your checkbook registry?
If so, which checks are bad?

12. You forget to record check #217 (shown below) in your checkbook
registry. Explain the consequences of this omission.

13. The bad check policy at your bank is to return the bounced check
to the vendor and charge your account $45 for each instance.
Using the information in Exercise 12, find the actual
balance in your checking account as of 7/8/12.

14. In addition to the bank charges in Exercise 13, each

vendor shown in your checkbook registry charges a $35
penalty for an insufficient funds check. What is your total
cost of bad check fees?

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92 Chapter 2 The Mathematics of Consumption

Where Does My Money Go? In Exercises 15–22, use the doughnut graph of your monthly
budget. (See Examples 5 and 6.)

Clothing: $50

Transportation:
Entertainment: $250
$594
Food: $550
Savings: $200
Miscellaneous: $241

Utilities: Medical insurance: $145

$350 Your Budget
Retirement: $225

Shelter: $775
Taxes: $1075

Credit cards: $45

15. Your entire monthly income is represented in the doughnut graph.

Find your gross annual income.

16. What percent of your expenses are budgeted for food?

17. What percent of your expenses are budgeted

for entertainment?

18. What percent of your expenses could you eliminate

if needed?

19. You are interested in buying a house. Your realtor

determines that the monthly mortgage (including property
taxes and insurance) would be $1350.00. Of the $594
budgeted for transportation expenses, $384 is your car
payment. According to the 28/36 rules, do you qualify for
the home mortgage?

20. According to the 28/36 rules, how much do you think you
will be able to spend on a monthly mortgage payment
10 years from now? Explain your reasoning.

21. You go to a financial adviser to get advice about household

budgets. The financial adviser gives you the general percent
guidelines shown. How does your budget compare with
the guidelines?

22. Describe other ways you could analyze your budget.

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2.4 Budgeting 93

Extending Concepts
23. Gym Membership Monthly budgets should
include expenses that occur quarterly,
semiannually, or annually. When you divide
these expenses to find a monthly average,
you are prorating the expense. A gym
membership is $150 each quarter. Prorate
this expense for your monthly budget.

24. Prorated Expenses For some months, the

actual amount spent on prorated expenses
will be $0. As a result, the surplus in your
monthly budget should increase by the
budgeted amount for the expense. Why
should you transfer this surplus to savings?

25. Mortgage You are planning to buy a new house, which will increase your shelter
expenses by $400. What adjustments would you make to your budget to accommodate
the increased expense?

26. Over Budget Many people make sincere attempts to follow a monthly budget. However,
for some people, these attempts fail because they either spend more than they should on a
certain category or they underestimate an expense in the budget. How can you handle an
expense that seems to repeatedly go over budget?

Bank Fees Many banks and credit unions charge their customers some type of
monthly maintenance fee or various transaction fees such as an ATM withdrawal fee.
In Exercises 27 and 28, use the portion of your bank statement shown.

27. Why should you account for the bank fees in your
checkbook registry?

28. As an executive at a bank, you are in charge of setting

up the fee structure, including monthly maintenance
fees, bad check fees, and ATM transaction fees. Write
a detailed policy explaining how and when these fees
would be applied to a customer’s account.

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94 Chapter 2 The Mathematics of Consumption

2.3–2.4 Quiz

Gas Station In Exercises 1– 6, use the sales receipt.

1. Sales taxes are not applied to cigarettes and gasoline for
this purchase.
a. What is the state sales tax rate?
b. What is the county sales tax rate?
c. Use the table on page 80 to determine the state in which
the gas station is located.

2. The state excise tax on a pack of cigarettes is $1.03.

a. How much is paid in state excise tax for the cigarettes?
b. What percent of the cost of the cigarettes is allocated to
state excise tax?

3. The state excise tax on a gallon of gasoline is $0.17.

a. How much is paid in state excise tax for the gasoline?
b. What percent of the cost of the gasoline is allocated
to state excise tax?

4. How would you enter this trip to the gas station in your
monthly budget?

5. Your checkbook registry is shown. What is the balance in

your checking account as of 9/9/12?

Date Check # Transaction Credit Debit Balance

Balance Forward 712 .34
9/3/12 361 Rent 540.00
9/3/12 ATM Withdrawal 80.00
9/4/12 ATM Deposit 120.00
9/6/12 363 Department Store 15 4.17
9/7/12 Direct Deposit Paycheck 525.36
9/9/12 364 Gas Station 61.18

6. You forget to record check #362 in

your checkbook registry.
a. Explain the consequences of this
omission.
b. Your bank charges $40 for a bad
check. Find the actual balance in
your checking account as of 9/9/12.

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Chapter 2 Summary 95

Chapter 2 Summary

Section Objectives How does it apply to you?

The unit price of an item is the amount you pay per unit of
Find the unit price of an item.
Section 1

weight or volume. (See Examples 1 and 2.)

Compare the unit prices of two or You can use unit prices to compare the costs of two or more
more items. items that have different sizes. (See Examples 3 and 4.)

Small differences in unit prices can add up to large savings.

Find the annual cost of an item.
(See Examples 5 and 6.)

A markup is how much more you pay for an item than a

Find the markup of an item.
retailer. (See Examples 1 and 2.)
Section 2

A discount is the amount you save when an item is on sale.

Find the discount of an item.
(See Examples 3 and 4.)

When you have two discounts on the same item, the final
Find the final price after multiple
price can depend on the order in which you calculate the
discounts.
discounts. (See Examples 5 and 6.)

Sales tax increases the amount you pay for an item.

Find the sales tax on an item.
(See Examples 1 and 2.)
Section 3

The federal government charges excise taxes on goods such

Find the excise tax on an item. as alcohol, tobacco, gasoline, and gambling to generate
revenue. (See Examples 3 and 4.)

Find the value-added tax on In some countries, a value-added tax is included in the retail
an item. price. (See Example 5.)

Create and balance a monthly A budget can help you manage your money.
budget. (See Examples 1 and 2.)
Section 4

Checks are a common form of payment. A balanced

Write checks and balance a
checkbook can help you keep track of your money and
checkbook.
avoid overdrafts and bad checks. (See Examples 3 and 4.)

You can analyze your budget to determine if you are spending

Analyze a budget.
your money wisely. (See Examples 5 and 6.)

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96 Chapter 2 The Mathematics of Consumption

Chapter 2 Review Exercises

Section 2.1
Soda In Exercises 1– 4, use the soda prices shown.
2-liter bottle 6-pack Case

2L 101.4 fl oz 144 fl oz
$0.89 $2.69 $3.79

1. Compare the unit prices of the products.

2. A 20-fluid-ounce bottle of soda sells for $1.50. Find the unit price of the 20-fluid-ounce bottle.
Then compare it with the unit price of the 2-liter bottle.

3. A family of 4 drinks about 200 gallons of soda annually. All of the family’s soda is purchased
in 2-liter bottles instead of 6-packs. How much does the family save per year?

4. A store offers a deal of $10.00 for 4 cases of soda.

a. Compare the unit price for four cases with the deal to the unit price for one case
without the deal.
b. How much do you save per case with the deal?

Soda The sizes of the bubbles in the bubble graph represent the unit prices of
four sodas. The bigger the bubble, the greater the unit price. In Exercises 5– 8,
use the bubble graph.

5. Without changing the volume, how does Unit Price of Soda

increasing the price affect the size of 4.50

bubble A? 4.00
D
3.50
6. Without changing the price, how does
Price (dollars)

3.00
decreasing the volume affect the size C
of bubble C? 2.50

2.00

7. Which bubble represents the product with 1.50 A

the most soda per dollar? Explain your 1.00
reasoning. B
0.50

0.00
8. Which bubble represents the product with 0 20 40 60 80 100 120 140 160 180
the least soda per dollar? Explain your Volume (fluid ounces)
reasoning.
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Chapter 2 Review Exercises 97

Section 2.2
Waffle Maker The waterfall graph shows the pricing history of waffle makers at
an appliance outlet. In Exercises 9–16, use the waterfall graph.

Pricing History
70

60
–$5
50 –$10
Price (dollars)

+$25
40
–$15
30

20
$35
$30
10

0
Wholesale Markup Discount 1 Discount 2 Discount 3 Final

9. Find the initial retail price.

10. Find the initial markup percent.

11. Find the total discount.

12. You work at the outlet. You order 50 waffle

makers at the wholesale price of $35 each. During
the next 6 months, you repeatedly mark down the
price until you finally sell all 50 waffle makers. Use the
sales record below to find the average markup percent.

• 20 sold at initial retail price • 14 sold at the first discount

• 10 sold at the second discount • 6 sold at the third discount

13. What is the discount percent on the initial retail price after the second discount?

14. When you apply the third discount, the outlet advertises a 50% discount.
a. Did the outlet use the initial retail price or the price after the second
discount to calculate the discount percent? Explain your reasoning.
b. Suppose the outlet had used the other price in part (a). What is the discount percent?

15. You get an employee discount of 10% off any item. You buy a waffle maker after the
first discount. How much do you pay?

16. You get an employee discount of 50% off any item.

a. What is the final price when you apply the first discount and then apply
the employee discount?
b. What is the final price when you apply the employee discount and then
apply the first discount?

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98 Chapter 2 The Mathematics of Consumption

Section 2.3
17. Nonexempt In many places, cigarettes are exempt from sales tax. However, some tax
jurisdictions charge sales tax on cigarettes in addition to an excise tax. For instance,
retailers in Colorado charge a 2.9% state sales tax on cigarettes. What is the sales tax
on a $5.50 pack of cigarettes in Colorado?

18. Sales Tax Rate A convenience store charges $5.75 for a pack of cigarettes. The sales receipt
shows that you paid a total of $5.98 including $0.23 in sales tax. Find the sales tax rate.

Cigarettes In Exercises 19–22, use the information in the map.

State Excise Tax Rates on Cigarettes

As of July 2010
(dollars per pack)
1.78
3.025
2.24 2.00
1.70 0.44
1.56
1.18
2.51
2.52
0.57 1.53 4.35
0.60 2.00 3.46
1.36 1.60 3.00
0.80 0.64 0.995 1.25
1.70 0.98 2.70
0.84 0.55 0.30 1.60
0.87 0.79 0.17 0.60
2.00
0.45
0.62
2.00 1.03
1.66 1.15 0.57
0.68 0.37
2.00 0.36 0.425
1.41

3.00 1.33

Greater than $2.00

$1.501–$2.00 Note: Federal excise tax on cigarettes is $1.01.
$1.001–$1.50
$0.501–$1.00
$0.50 or less

19. A customer buys four packs of cigarettes in Tennessee. How much does the customer
pay in federal and state excise taxes?

20. In Connecticut, a customer purchases 2 packs of cigarettes for $11.50. What percent of
the cost is allocated to federal and state excise taxes?

21. How is an excise tax different from a value-added tax?

22. In 1995, the federal excise tax on a pack of cigarettes was $0.24.
a. Use a percent to describe the change in the federal excise tax from 1995 to 2010.
b. How might the government justify the increase?

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Chapter 2 Review Exercises 99

Section 2.4
Cell Phone In Exercises 23 –26, use the line graph.

Cell Phone Expenses

145
140
135
130
Cost (dollars)

125
120
115
110
105 Actual
100 Budget
0
Jan Feb Mar Apr May Jun
Month

23. Estimate the difference between the actual amount and the
budgeted amount for each month.

24. What effect does exceeding the budgeted cell phone expense
have on the budget surplus or shortage? Explain.

25. Based on the line graph, what adjustments should you make
to your monthly budget?

26. You pay April’s cell phone bill with check #192. Your checkbook
registry is shown. What is the balance in your checking account
as of 4/5/12?

Date Check # Transaction Credit Debit Balance

Balance Forward 341.48
4/2/12 ATM Deposit 50.00
4/5/12 191 Car Insurance 104.50
4/5/12 192 Cell Phone Company 142.00

27. Home Mortgage You are interested in buying a house. Your realtor determines that the
monthly mortgage payment (including property taxes and insurance) would be $1075.
Your gross annual income is $47,000, and you already have a monthly car payment and
a monthly credit card payment totaling $340. According to the 28/36 rules, should you
qualify for the home mortgage?

28. Debt-to-Income Ratio Use the Internet to research the 28/36 rules. How were the
qualifying levels for a home mortgage determined to be 28% and 36%?

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3 The Mathematics of
Logic & the Media

3.1 Sets & Set Diagrams

Use a union of two sets to represent or.
Use an intersection of two sets to represent and.
Use the complement of a set to represent not.

3.2 Statements & Negations

Analyze statements that have the term all.
Analyze statements that have the term some or many.
Analyze negations of statements.

3.3 Deductive & Inductive Reasoning

Use deductive reasoning with syllogisms.
Know how a deductive reasoning system is created.
Use inductive reasoning.

3.4 Fallacies in Logic

Recognize deductive fallacies.
Use set diagrams to detect fallacies.
Recognize fallacies in advertisements.

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Point 1
Ridge ending

Point 2
Bifurcation

Point 3
Dot

Point 4
Island

Point 5
Lake

Point 6
Hook

Example 4 on page 105 explains why a 6-point match in

fingerprinting is not sufficient for a positive identification. How
many points do you need for a positive identification?

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102 Chapter 3 The Mathematics of Logic & the Media

3.1 Sets & Set Diagrams

Use a union of two sets to represent or.
Use an intersection of two sets to represent and.
Use the complement of a set to represent not.

The Union of Two Sets

Anal
Analyzing a statement is often easier when you can visualize the statement. In
mathematics, you can use sets and set diagrams to visualize statements that deal
math
with “belonging to a group” or “having a characteristic.”

FFinding the Union of Two Sets

Th union of set A and set B is everything that is in set A or set B. A set
The
diagram for the union of two sets is shown below.
di

In both sets

A B

In set A but In set B but

not in set B not in set A

Drawing a Set Diagram

Ther are about 6 million households in the United States that have 1 or more
There
birds as pets. There are about 38 million households that have 1 or more cats as
pets. Suppose about 2 million households have both birds and cats as pets. Use a
set ddiagram to determine how many households have a bird or a cat as a pet.

SOLUTION
Study Tip 2 million have both.
Notice that a union of two
sets is used as a visual for
the word or. In logic, or is Bird
considered to be the Cat owners
owners
“inclusive or,” meaning that
it includes one case, or the 4 million have 36 million have
other case, or both. birds but no cats. cats but no birds.

So, 42 million households (4 + 2 + 36) have a bird or a cat as a pet.

Checkpoint Help at

There are about 120 million women (18 years old or older) in the
United States. Of these, about 5.7 million rode a motorcycle during the
past year. In all, about 25 million Americans rode a motorcycle during the
past year. Draw a set diagram that shows this information. Label each region.

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3.1 Sets & Set Diagrams 103

Describing Set Diagram Regions

The set diagram has seven regions. Describe the characteristics of people who
are in each region.

a b

People who are People who have

professional d blue eyes
dancers
g
f e

People who have

blond hair
c

SOLUTION
a. Professional dancers who do not have blue eyes or blond hair
b. People who have blue eyes but are not professional dancers and
do not have blond hair
c. People who have blond hair but are not professional dancers and
do not have blue eyes
d. Professional dancers who have blue eyes but do not have blond hair
e. People who have blue eyes and blond hair but are not professional dancers
f. Professional dancers who have blond hair but do not have blue eyes
g. Professional dancers with blue eyes and blond hair

Checkpoint Help at

Silver Bronze
Star Star
A group of military veterans gathers
for a reunion dinner. Each veteran
earned a Soldier’s Medal, a Silver Star,
a Bronze Star, or a Purple Heart.
12 14
h. How many earned a
4 Purple Heart?
5 10
i. How many earned a Purple
6 0 0 22 Heart or a Bronze Star?

1 j. How many earned a Purple

0 8 Heart and a Bronze Star?
2 0
Soldier’s Purple k. How many of the veterans
Medal Heart
6 earned all four medals? Explain.

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104 Chapter 3 The Mathematics of Logic & the Media

The Intersection of Two Sets

Finding the Intersection of Two Sets

Study Tip The intersection of set A and set B is everything that is in set A and set B.
In applications, union is A set diagram for the intersection of two sets is shown below.
often associated with the
word or and intersection is In both sets
often associated with the
word and.
A B
The union of A and B is
everything that is in A or B.
In set A but In set B but
The intersection of A and
not in set B not in set A
B is everything that is in A
and B.

There are two formulas in set theory that relate the number of items in the union
and intersection of two sets.

Number Number of Number of Number in

in union = items in A + items in B − intersection

Number in Number of Number of Number

intersection = items in A + items in B − in union

Using a Set Diagram

You are reading a mystery novel about two crimes committed on a yacht.
There are 11 passengers. Each passenger has at least 1 alibi, 8 have an alibi for
1 crime, and 7 have an alibi for the other crime. Assuming the alibis are valid,
how many of the passengers are certain to have not committed either crime?

SOLUTION
There are 11 people
in the union.

A: Alibi B: Alibi
for 1st for 2nd
crime crime
There are 8 There are 7
people in A. people in B.

Number in Number of Number of Number

intersection = items in A + items in B − in union

= 8 + 7 − 11 = 4
So, four of the passengers have alibis for both crimes. You can be certain that
none of these four committed either crime.

Checkpoint Help at

Suppose that of the 11 passengers, each has at least 1 alibi, 9 have an alibi for
1 crime, and 8 have an alibi for the other crime. Assuming the alibis are valid,
how many of the passengers are certain to have not committed either crime?
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3.1 Sets & Set Diagrams 105

Finding the Intersection of Sets

Suppose there are 1 billion people whose index fingerprint has the Point 1
characteristic. A similar number of people have each of the other five
characteristics. Suppose that for any 2 of the 6 basic sets in the diagram,
there is a 20% overlap. Explain why a 6-point match between 2 fingerprints
is not a guarantee that the fingerprints came from the same person.

Point 1
Ridge ending

Point 2
Bifurcation

Point 3
Dot

Point 4
Island
This region represents
Point 5
Lake
the people whose index
fingerprint has all six
Point 6 characteristics.
Hook

SOLUTION
Twenty percent (or 200 million) of the people have Points 1 and 2. Up to
40 million people have Points 1, 2, and 3. Continuing this pattern, up to 320,000
people have all 6 points. This gives you some idea why a 6-point match is not
good enough to make a positive identification.

Checkpoint Help at

A. B.

A 12-point match is often Crossover

considered sufficient to
conclude that 2 fingerprints Bifurcation
come from the same person.
In the research article Ridge ending
“On the Individuality of
C. D. Fingerprints,” the authors Core
state “the probability that a
fingerprint with 36 minutiae Pore
points will share 12 minutiae
points with another arbitrarily Island
chosen fingerprint with
36 minutiae points is Delta
6.10 × 10−8.”
Fingerprints (A) and (B) come from
the same finger but look different. In Example 4, suppose that there are 12 different points. Continue the
Fingerprints (C) and (D) come from pattern described in the solution to find the number of people who are
different fingers but look similar. in the intersection of all 12 sets.

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106 Chapter 3 The Mathematics of Logic & the Media

The Complement of a Set

Finding the Complement of a Set

Study Tip
The complement of set A consists of everything that is in some universal
The complement of a set set U, but not in set A. A set diagram for the complement of a set is
depends on the context of shown below.
the situation. For instance,
the complement of “all U
6th-grade students” could be
“all middle school students
A
who are not in 6th grade” or Complement
it could be “all students who of set A
are not in 6th grade.”

If you know how many items are in set A and in set U, then you can calculate the
number of items in the complement of set A.

Number in Number of Number of

= items in U − items in A
complement

â Ź

Finding the Complement of a Set

The numbers of unemployed people in the Number
United States in a recent year are shown. Age Unemployed
The total number of employed people and 16–19 1,285,000
unemployed people was 154,286,000.
20–24 1,545,000
How many people were employed?
25–44 3,553,000
45–64 2,276,000
65+ 264,000
SOLUTION

U: Employed or unemployed

25–44 45–64
16–19 20–24
65à

Unemployed = 1,285,000 + 1,545,000 + 3,553,000 + 2,276,000 + 264,000

= 8,923,000
Employed = 154,286,000 − 8,923,000 â Ź

= 145,363,000 About 145 million employed

Checkpoint Help at

What was the unemployment rate for the year shown in Example 5?

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3.1 Sets & Set Diagrams 107

Finding the Complement of a Set

T
There are about 62,300 species of vertebrates on Earth. They are classified as
fish, amphibians, reptiles, mammals, and birds.

Vertebrates
Birds:
10,000
10,
10
0,000
00 species
Reptiles:
9100 species

Amphibians:
6400 species
p Mammals:als:
al s:
5500
species

a.
a How many species of fish are on Earth?
b.
b Would you say that there is more diversity among fish than
among the other vertebrate classes? Explain your reasoning.

SOLUTION
SOLUTIO
Fish are
re fou
found
d iin nearly all aquatic
a. Fish species = 62,300 − (10,000 + 9100
0 + 6400 + 5500)
environments, from high mountain
streams to the depths of the = 62,300 − 31,000
deepest oceans.
= 31,300
There are about 31,300 species of fish
on Earth.
b. There are more species of fish than in alll
of the other vertebrate classes combined.
it
So, fish have a much greater species diversity
than any of the other vertebrate classes.

Checkpoint Help at

There are about 400 species of sharks.

Draw a set diagram that relates
shark species with all other species
of fish. Label the number of species
in each region.

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108 Chapter 3 The Mathematics of Logic & the Media

3.1 Exercises
College Testing In Exercises 1 and 2, use the information below. (See Example 1.)
In a high school graduating class, 128 students took the SAT, 100 students took
the ACT, and 98 students took both the SAT and the ACT.
1. Draw a set diagram that shows the information.

2. How many students took the SAT or the ACT?

Colleges The set diagram shows characteristics of colleges that

a high school senior is considering. In Exercises 3–8, use the
set diagram. (See Example 2.)

3. How many of the colleges offer an engineering program?

4. How many of the colleges offer sports scholarships or an engineering program?

5. How many of the colleges offer sports scholarships and have an enrollment
less than 2000?

6. How many of the colleges have tuition less than $20,000 per year, offer an
engineering program, and offer sports scholarships?

7. Use the set diagram to determine whether colleges with an enrollment less than
2000 are likely to have tuitions less than $20,000 per year. Explain why the answer
is reasonable in real life.

8. List three characteristics of a college that are important to you. Research 20 colleges
to determine whether each college meets your desired characteristics. Create a set
diagram of the results.

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3.1 Sets & Set Diagrams 109

Trivia In Exercises 9 and 10, use the information below. (See Example 3.)
A contestant on a game show must answer two trivia questions correctly
to advance to the next qualifying round. Of the 10 contestants, 7 answer
the first question correctly and 6 answer the second question correctly.

9. Draw a set diagram that shows the information.

10. How many of the contestants advance to the next qualifying round?

Game Show In Exercises 11–16, use the information below. (See Example 4.)
A game show contestant has a chance to win a car, a boat, and an all-terrain
vehicle (ATV). There are eight keys that start the engine of each prize, two
of which start the engine of all three prizes. There is a 50% overlap for any
2 of the sets in the diagram.

Keys that start the car Keys that start the boat

Keys that start the ATV

11. How many keys start the engine of exactly one prize?

s?
12. How many keys start the engines of exactly two prizes?

13. How many keys start the engine of the car and the boat?

14. How many keys start the engine of the car or the boat?

15. The contestant begins the game by choosing a key from a basket. How many keys
are in the basket?

16. In the United States, game show contestants must pay taxes on items they win. As a
result, contestants often refuse some or all of their prizes.
a. You win the $40,000 car, the $15,000 boat, and the $5,000 ATV in December.
Suppose you will owe taxes in April equal to 25% of the value of your winnings.
How much will you owe? What will you do?
b. You decide to keep all the prizes and sell the boat to cover the taxes. Can you
be certain this will cover the taxes? What other problems might you encounter?
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110 Chapter 3 The Mathematics of Logic & the Media

Nuclear Weapons In Exercises 17 and 18, use the

information below. (See Example 5.)
A country’s stockpile of nuclear weapons consists of
operational warheads and reserve warheads.
U.S. stockpile: 5113 warheads
• Operational warheads:
• 1968 strategic
• 500 nonstrategic

17. Draw a set diagram that shows the information.

18. How many reserve warheads are in the U.S. stockpile?

Nuclear Weapons In Exercises 19 and 20, use the information

and the set diagram. (See Example 6.)
Russia’s 4600 operational warheads consist of nonstrategic
warheads and the following strategic warheads.

• Intercontinental ballistic missiles (ICBMs)

• Submarine-launched ballistic missiles (SLBMs)
• Bombers/weapons

19. How many Russian operational warheads are nonstrategic?

20. Can you use these data to determine whether the United States
or Russia has a greater stockpile of nuclear weapons? Explain your reasoning.

21. New START In 2010, the United States ratified the New START (Strategic Arms Reduction Treaty)
with Russia. This agreement reduces the number of strategic nuclear weapons in each country.
a. How do you think New START will affect the set diagrams in Exercises 17–20?
b. Discuss trends in the graph. How do you think New START will affect the graph?

U.S. Nuclear Weapons Stockpile (1945–2009)

35,000 Maximum warheads: 31,255

30,000 Cuban
25,000 Missle Crisis
Warheads

20,000 USSR disbands

15,000

10,000

5,000

0
1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Fiscal years

22. Doomsday Clock The Bulletin of the Atomic Scientists assesses how close humanity is to
doomsday. Midnight represents doomsday. Do you think the minute hand is moving away
from midnight, toward midnight, or neither? Explain your reasoning.

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3.1 Sets & Set Diagrams 111

Extending Concepts
Bobbleheads In Exercises 23 and 24, a company is conducting a survey to
determine which bobblehead would generate the most sales. Participants
must choose at least one bobblehead from the following list.
A. Albert Pujols B. Drew Brees C. LeBron James D. Phil Mickelson

23. How many different sets of choices can result from the survey?

24. Which set diagram should the company use to display the results? Explain.

B The firstt modern

modern
d bbobb
bobbleheads
bbbble
blehe
blehe
h
A B
were introduced in the 1950s
and were popularized with
A the help of Major League
Baseball.

C
D C
D

Forbes top 100 global

U.S. Banking Companies In Exercises 25–28, use the company rankings, 2010
set diagram.
25. How many of the companies are not U.S. banking companies? Banking U.S.
companies companies
26. How many of the companies are not banking companies? 3
26 24
27. How many of the companies are neither U.S. companies nor
banking companies?

28. The graph shows the value of the KBW Bank Index (ticker: BKX) from 2008 to 2010.
It is intended to reflect the evolving U.S. financial sector. How do you think the set
diagram above will change when altered to show the list from early 2009 (during the
U.S. financial crisis)? early 2008 (before the U.S. financial crisis)? Explain.

KBW Bank Index (2008–2010)

100
90
80
70
60
Value

50
40
30
20
10
0
2008 Apr Jul Oct 2009 Apr Jul Oct 2010 Apr Jul Oct 2011
Year

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112 Chapter 3 The Mathematics of Logic & the Media

3.2 Statements & Negations

Analyze statements that have the term all.
Analyze statements that have the term some or many.
Analyze negations of statements.

Statements Involving All

Logic is the study of the rules and terms used to make persuasive arguments. A
Study Tip statement is a declarative sentence that is either true or false. An argument is a
Examples of logical terms string of two or more statements that imply another statement. Here is an example
are: and, or, not, true, false, of an argument.
if, therefore, every, some,
at least one, and all. • Premise: All types of fruit are food.
• Premise: Tomatoes are a type of fruit.
• Conclusion: Therefore, tomatoes are food.
In this lesson, you will see how set diagrams can be used to analyze statements.
In Section 3.3, you will learn rules for writing logical arguments. Finally,
in Section 3.4, you will learn to recognize illogical arguments, which are
called fallacies.

Analyzing a Statement Involving All

Use a set diagram to analyze
the statement taken from the
Declaration of Independence.

SOLUTION
There are several ways to use
set diagrams to analyze this
statement. Here are three of them.

Creatures who Creatures who Creatures who

have the right to have the right to have the right to
Life Liberty Pursue Happiness

Virginia Historical Society, [Link] All All All

people people people
The Declaration of Independence
was written primarily by Thomas
Jefferson and adopted by the
Notice that the statement says nothing about animal rights. It does leave open the
Continental Congress on
possibility that animals also have such rights.
July 4, 1776. It announced that
the 13 American colonies were
no longer part of the British Checkpoint Help at
Empire. The document uses
logic to justify a people’s right Use a set diagram to analyze the 10th Amendment in the Bill of Rights:
to abolish a government that “The powers not delegated to the United States by the Constitution, nor prohibited
denies them basic human rights. by it to the States, are reserved to the States respectively, or to the people.”

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3.2 Statements & Negations 113

Analyzing a Statement Involving All

Use a set diagram to analyze the pet policy in a renter’s agreement.

PET POLICY Resident agrees to pay a nonrefundable pet fee

of $20 per month per pet. All pets found on the property, but not
registered under this agreement, will be presumed to be strays and
ddisposed of by the appropriate agency as prescribed by law. In the
eevent a resident harbors an undisclosed pet, he or she agrees to pay
a pet fee for the entire term of the agreement, regardless of when the
ppet was first introduced to the household.

SOLUTION
Here is one way to visualize the second sentence of the policy.

The home ownership rate in the Pets on property

United States is about 67%. That is, Registered
Unregistered
about 67% of all occupied housing
units are occupied by the unit’s
owner. The other 33% of occupied
housing units are occupied Strays Disposed of
by renters.

Using a set diagram helps you understand what is and is not being said by
the policy. Here are some examples.

• It is possible that some strays are not disposed of.

• It is possible that some pets that are disposed of are not strays.
• All unregistered pets are considered strays and are disposed of.

Checkpoint Help at

Use a set diagram to analyze the court cost clause in a renter’s agreement.

COURT COSTS Resident agrees to pay all court

costs and attorneys’ fees incurred by the owner in
enforcing legal action or any of the owner’s other
rights under this agreement or any state law. In the
event any portion of this agreement shall be found
to be unsupportable under the law, the remaining
provisions shall continue to be valid and subject to
enforcement in the courts without exception.

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114 Chapter 3 The Mathematics of Logic & the Media

Statements Involving Some or Many

Analyzing a Statement Involving Some

Use a set diagram to analyze the statement, “In the United States, some
presidential candidates have won the popular vote but still lost the election.”

Andrew Jackson won Samuel Tilden won Grover Cleveland won Albert Gore won the
the popular vote but the popular vote but the popular vote but popular vote but lost
lost the election in 1824. lost the election in 1876. lost the election in 1888. the election in 2000.

SOLUTION
Here is one way to use a set diagram to analyze the statement.

Candidates for president of the United States

Many candidates
lost both the popular Candidates
Candidates
vote and the election. who won
who won
the popular
the election
vote

Some candidates (Jackson, Tilden, Most candidates who Some candidates (J.Q. Adams, Hayes,
Cleveland, and Gore) won the popular won the popular vote Harrison, and G.W. Bush) lost the
vote but still lost the election. also won the election. popular vote but still won the election.

Checkpoint Help at

Use a set diagram to represent the statement, “In the United States, 14 presidents
served as vice presidents: J. Adams, Jefferson, Van Buren, Tyler, Fillmore,
A. Johnson, Arthur, T. Roosevelt, Coolidge, Truman, Nixon, L. Johnson, Ford, and
George H.W. Bush. Of these, Tyler, Fillmore, A. Johnson, Arthur, and Ford did not
win a presidential election.”

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3.2 Statements & Negations 115

Analyzing a Statement Involving Many

Use a set diagram to analyze the concepts in the paragraph.

“The late nineteenth and early twentieth centuries are often referred to as the time of the ‘robber barons.’
It is a staple of history books to attach this derogatory phrase to such figures as John D. Rockefeller, Cornelius
Vanderbilt, and the great nineteenth-century railroad operators—Grenville Dodge, Leland Stanford, Henry
Villard, James J. Hill, and others. To most historians writing on this period, these entrepreneurs committed
thinly veiled acts of larceny to enrich themselves at the expense of their customers. Once again we see the
image of the greedy, exploitative capitalist, but in many cases this is a distortion of the truth.” How Capitalism
Saved America: The Untold History of Our Country, from the Pilgrims to the Present, Thomas J. DiLorenzo

History Repeats Itself—The

Robber Barons of the Middle
Ages, and the Robber Barons
of Today.
This 19th-century cartoon
compares wealthy industrialists
to the feudal lords of the Middle
Ages who charged excessive
fees to merchants who passed
through their lands.

The Granger Collection, New York

SOLUTION
SO
The paragraph implies Entrepreneurs in the late
that this region is not 19th and early 20th centuries
empty. There were many
entrepreneurs in the late
19th and early 20th Greedy, exploitative
centuries who were not capitalists
greedy and exploitative.

Checkpoint Help at

Use a set diagram to analyze the concepts in the paragraph.

Us

R
Robber barons were often depicted as men wearing suits with
ttop hats and walking sticks. Mr. Monopoly, originally known
aas Rich Uncle Pennybags, is an example of this characterization
iin popular culture.

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116 Chapter 3 The Mathematics of Logic & the Media

The Negation of a Statement

You might think that finding the negation of a statement is simple. Often, this is
true. For instance, the negation of

Fred owns a red pickup. is Fred does not own a red pickup.

Statement Negation of statement

However, when a statement contains terms such as and or or, finding the
negative can be a bit more challenging. In such cases, a set diagram can help
describe the negation.

Negating a Statement Involving And

Use a set diagram to visualize the negation of the “to love and to cherish” portion
of this traditional wedding vow.

I take you to be my wedded spouse. To have and to hold, from this day
forward, for better, for worse, for richer, for poorer, in sickness or in
health, to love and to cherish until death do us part.

SOLUTION
Start by drawing a set diagram. Identify the regions represented by the original
statement. Then identify all the regions other than those represented by the
original statement.
Original Statement Negation of Statement

Feelings and actions Feelings and actions

since vow was taken since vow was taken

Love Cherish Love Cherish

The vow promises both The negation consists

to love and to cherish, of all regions, except
which is an intersection. the intersection.

So, the vow can be broken in three ways.

• Continue to love, but cease to cherish.

• Continue to cherish, but cease to love.
• Cease loving and cherishing.

Checkpoint Help at

Use a set diagram to visualize the negation of this accusation in the game
of CLUE: “It was Miss Scarlet with the wrench in the kitchen.” If you are
playing the game, how can you prove this accusation to be false?

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3.2 Statements & Negations 117

Negating a Statement Involving Or

Use a set diagram to visualize the negation of the statement. Then, describe
how the original statement can be false.

British Cession This summer I will visit the region

1818 acquired by the Oregon Treaty or the
Oregon
Treaty Louisiana Purchase.
1846

Louisiana The United States purchased or annexed

Mexican Purchase its land (outside the original 13 colonies)
1803 Treaty in 10 stages.
Cession
of Paris
1848
1783 Original 13 1783: Treaty of Paris
colonies 1803: Louisiana Purchase
Texas
Annexation 1818: British Cession
Gadsden Purchase
1845 1819: Florida Treaty
1853
1845: Texas Annexation
Florida
Alaska Treaty 1846: Oregon Treaty
Purchase Hawaii 1848: Mexican Cession
1819
1867 Annexation
1898
1853: Gadsden Purchase
1867: Alaska Purchase
1898: Hawaii Annexation
SOLUTION
Start by drawing a set diagram. Identify the regions represented by the original
statement. Then identify all the regions other than those represented by the
original statement.

Original Statement Negation of Statement

Places visited Places visited

Visit Visit Visit Visit

Oregon Louisiana Oregon Louisiana
Treaty Purchase Treaty Purchase
region region region region

The original statement The negation of the

is true if you visit one statement is true if you
or both of the regions. do not visit either region.

Notice that the original statement is still true if you visit both regions.

Checkpoint Help at

Use a set diagram to visualize the negation of the statement. Then describe
how the original statement can be false.

I am going to write about the Mexican Cession, the Gadsden Purchase,

or the Texas Annexation for my term paper in American History.

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118 Chapter 3 The Mathematics of Logic & the Media

3.2 Exercises
Social Networking In Exercises 1–7, use a set diagram to analyze the statement
about a social networking website. (See Examples 1 and 2.)
1. You own all the content and information that you post.

2. All businesses can join the website and create fan clubs.

3. All individuals can join the website, post pictures, and

manage their privacy settings.

4. You can receive a text message notification on your phone

for every friend request and every email you receive on
the website.

5. You will not conduct any contests on the website

without prior authorization from the website
administrators. All unauthorized contests found will be
considered illegal activity and will be terminated. Your
membership may also be terminated.

6. A fast-food restaurant has a fan page for its avocado burger

and a separate fan page for its jalapeno burger. Every member
who is a “fan” of both burgers will receive a coupon for a free
burger of his or her choice.

7. All members who are fans of the avocado burger, jalapeno

burger, and veggie burger are eligible for a grand prize. Add
this information to your set diagram in Exercise 6.

8. Privacy Settings The recommended privacy settings on a social networking website are shown.
a. Use a set diagram to analyze the
different categories of members. Friends of All
Indicate what parts of your Friends Friends Members
profile are accessible to Name and main picture
each region in the set diagram.
Family and relationships
b. You have a circle of friends Photos and videos
that you frequently spend time
Political views
with as a group. Where in the
set diagram are these friends Birthday
most likely located? Permission to write on your page
Contact information

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3.2 Statements & Negations 119

Pearl Harbor In Exercises 9 and 10, use a set diagram to analyze the statement
about the attacks at Pearl Harbor on December 7, 1941. (See Example 3.)
9. Some of the Japanese machinery destroyed in the attack were
midget submarines.
USS Penn
sylvania
10. Some of the U.S. ships heavily damaged in the attack
were battleships.

USS Dow USS Cass

nes in

The USS Arizona sank in Pearl Harbor, where it still lies The USS Pennsylvania was dry-docked when the attacksk
today. A memorial was built above the battleship. You can occurred. The battleship received only minor damage. The
see the image of the sunken ship in the picture above. destroyers USS Downes and USS Cassin were dry-docked
with the USS Pennsylvania, but they were heavily damaged.

Winston Churchill In Exercises 11–14, use a set diagram to analyze

the Winston Churchill quote. (See Examples 3 and 4.)
11.
“Some see private enterprise as a predatory target to be shot, others as
a cow to be milked, but few are those who see it as a sturdy horse
pulling the wagon.”

12.
“Once in a while you will stumble upon the truth but most of us manage
to pick ourselves up and hurry along as if nothing had happened.”

13.
“Though I have now stated the two great dangers which menace the
homes of the people, war and tyranny, I have not yet spoken of poverty
and privation which are in many cases the prevailing anxiety.”
“Sinews of Peace” speech

14.
“From Stettin in the Baltic to Trieste in the Adriatic, an iron curtain
has descended across the Continent. Behind that line lie all the capitals Winston Churchill served as the
of the ancient states of Central and Eastern Europe. Warsaw, Berlin, British prime minister twice, with his
Prague, Vienna, Budapest, Belgrade, Bucharest and Sofia, all these first term during World War II. He
famous cities and the populations around them lie in what I must call was the first of seven foreigners to
the Soviet sphere, and all are subject in one form or another, not only be named honorary citizens of the
to Soviet influence but to a very high and, in some cases, increasing United States.
measure of control from Moscow.” “Sinews of Peace” speech

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120 Chapter 3 The Mathematics of Logic & the Media

New Year’s Resolutions In Exercises 15–18, use a set diagram to visualize

the negation of the New Year’s resolution. (See Examples 5 and 6.)
15. I will save $100 each month and go on a vacation overseas.

16. I will exercise 4 times each week and lose 10 pounds.

17. I will volunteer at a homeless shelter or a soup kitchen.

18. I will stop biting my fingernails or cracking my knuckles.

Holidays In Exercises 19–21, use a set diagram to visualize the negation of

the statement about holidays in a company handbook. (See Examples 5 and 6.)

Holidays for Federal Employees

January February March April
S M T W T F S S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 1 2 1 2 1 2 3 4 5 6
6 7 8 9 10 11 12 3 4 5 6 7 8 9 3 4 5 6 7 8 9 7 8 9 10 11 12 13
13 14 15 16 17 18 19 10 11 12 13 14 15 16 10 11 12 13 14 15 5 16
16 14 15 17 18 19 20
20 21 22 23 24 25 26 17 18 19 20 21 22 23 17 18 19 20 21 22 2 23
23 21 22 24 25 26 27
27 28 29 30 31 24 25 26 27 28 24 25 26 27 28 29 9 30
30 28 29
31
May June July August
S M T W T F S S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 1 1 2 3 4 5 6 1 2 3
5 6 7 8 9 10 11 2 3 4 5 6 7 8 7 8 9 10 11 12 13 4 5 6 7 8 9 10
12 13 14 15 16 17 18 9 10 11 12 13 14 15 14 15 16 17 18 19 20 11 12 13 14 15 16 17
19 20 21 22 23 24 25 16 17 18 19 20 21 22 21 22 23 24 25 26 27 18 19 20 21 22 23 24
26 27 28 29 30 31 23 24 25 26 27 28 29 28 29 30 31 25 26 27 28 29 30 31
30
September October November December
S M T W T F S S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 7 1 2 3 4 5 1 2 1 2 3 4 5 6 7
8 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14
15 16 17 18 19 20 21 13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21
22 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28
29 30 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31

19. Employees will not be paid for vacations, holidays, and sick leave.

20. Employees do not have to work the Friday before Easter, September 11,
and holidays for federal employees.

21. Employees will be invited to a company picnic on Memorial Day,

Independence Day, or Labor Day.

22. Compensation The following statement is in a company’s employee handbook.

Employees will receive a cost-of-living adjustment each year

or a New Year’s Day bonus.

a. Use a set diagram to visualize the negation of the statement. (See Example 6.)
b. The company changes the word or to and. How does this change the negation
of the statement? (See Example 5.)

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3.2 Statements & Negations 121

Extending Concepts
ENERGY STAR In Exercises 23 and 24, use a set diagram to analyze the statement
about ENERGY STAR.
23.
The ENERGY STAR label was established to
■ reduce greenhouse gas emissions and other pollutants caused by the inefficient use of energy and
■ make it easy for consumers to identify and purchase energy-efficient products that offer savings on
energy bills without sacrificing performance, features, and comfort.

24.
ENERGY STAR Rebates
Each state and territory will choose dollar amounts for the
products selected. Most rebate amounts range from $50
to $500, depending upon the product being purchased, the
purchase price, and other potential market factors. Some states
give additional rebates for recycling.

CO2e Emissions per Hour

25. Emissions Use the graph to write

49.2 g
one statement involving “all” and
“some” that you can make about the
products in the graph. Use a set diagram
to analyze the statement.

11.1 g 9.6 g 7.8 g

Incandescent Compact Laptop Netbook

lightbulb fluorescent
lightbulb

Purchases In Exercises 26 –28, use a set diagram to visualize the negation of the
statement about planned purchases.
26. To help heat my apartment, I will buy a space heater and an electric fireplace,
or I will buy an ENERGY STAR qualified woodstove.

27. To update my plumbing, I will buy a solar water heater or gas condensing water
heater, and low-flow showerheads.

28. For my new home, I will buy a chest freezer or an upright freezer, and fluorescent
lighting or ENERGY STAR LED lighting.

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122 Chapter 3 The Mathematics of Logic & the Media

3.1–3.2 Quiz
Convictions The set diagram shows the offenses of the convicted inmates
at a prison. In Exercises 1–3, use the set diagram.

Drugs

252

12 42
5

36 108
40
Weapons Other

United States citizens have the right to appeal a

1. How many of the inmates were convicted of drug offenses? conviction. Appeals are handled through appellate
courts, but on rare occasions they can make it to
2. How many of the inmates were convicted of weapons offenses the Supreme Court of the United States.
and “other” offenses?

3. How many of the inmates were convicted of drug offenses or

weapons offenses?

Citizenship of Federal Inmates

4. Federal Inmates There are 209,770 Cuba Colombia

inmates in the U.S. federal prison system.
1777 2635
The inmates are classified as citizens of Mexico
the United States, Mexico, Colombia,
Cuba, the Dominican Republic, or other. Dominican
How many federal inmates are citizens Republic
of the United States? Other
2599
36,632 11,123

Rights of Accused In Exercises 5–7, use a

set diagram to analyze the statement about crime.
5. All defendants are presumed innocent until proven guilty.

6. Some people have been convicted of crimes they did not commit.

7. Habeas corpus is a safeguard of individual freedom stating that no person can be

jailed without being charged with a crime.

8. Sixth Amendment Part of the Sixth Amendment states, “In all criminal prosecutions,
the accused shall enjoy the right to a speedy and public trial.” Use a set diagram to
visualize the negation of this amendment.

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Chapter
p 3 Project
j Math & Set Diagrams
g 123

Math & Set Diagrams

PROJECT: Organizing Real-Life Information

1. Use the Month Set Diagram at [Link] to place the months in the correct locations.

31 days Name ends with y

Has an r in the name

January February March April May June July August
September October November December

Check Give up Reset Print

Place all months, one at a time, in the correct locations. Then, check your
answer.

2. Use the Alphabet Set Diagram at [Link] to place the letters of the alphabet
in the correct locations.

Has curves Has holes

Consonant
A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z
Check Give up Reset Print
Place all letters, one at a time, in the correct locations. Then, check your
answer.

3. Give an example of a real-life situation you could model using set diagrams similar
to those above.

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124 Chapter 3 The Mathematics of Logic & the Media

3.3 Deductive & Inductive Reasoning

Use deductive reasoning with syllogisms.
Know how a deductive reasoning system is created.
Use inductive reasoning.

Deductive Reasoning and Syllogisms

In this section, you will study two types of reasoning: deductive reasoning
and inductive reasoning. In deductive reasoning, you start with two or more
statements that you know or assume to be true. From these, you deduce or
infer the truth of another statement. Here is an example.

• Premise: If this traffic doesn’t clear up, I will be late for work.
• Premise: The traffic hasn’t cleared up.
• Conclusion: I will be late for work.
This pattern for deductive reasoning is called a syllogism. The classical Greek
philosopher Aristotle required that each premise be of the form “All A are B,”
“Some A are B,” “No A are B,” or “Some A are not B.” Such syllogisms are
called categor
categorical syllogisms.

Writing a Syllogism
Suppose that aliens
a from Mars visit Earth. Also suppose that the physicist
Hawking is correct on the outcome. What conclusion can you draw?
Stephen Hawk

“If aliens ever visit us, I think the outcome would be much as when
Christopher Columbus first landed in America, which didn’t turn out
Chr
very well for the Native Americans.” Stephen Hawking

SOLUTION
Here is one way to write this argument as a syllogism.
• Premise: All alien visits are bad for humans.
• Premise: All Martian visits are alien visits.
• Conclusion: All Martian visits are bad for humans.

Events that are bad

You can ususe a set
for humans
diagram to help see
Other events, such as
why the sysyllogism
plagues and wars,
is valid. Alien Martian
might also be bad
visits visits
for humans.

Checkpoint Help at

Any theory of gravity is a physical theory. Write a syllogism in which the

first premise is the Stephen Hawking quote, “Any physical theory is always
provisional, in the sense that it is only a hypothesis: you can never prove it.”

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3.3 Deductive & Inductive Reasoning 125

When working with a syllogism, there are three main concerns.

1. Is the first premise true?
2. Is the second premise true?
3. Is the syllogism valid, having the correct conclusion?
For instance, in Example 1, regardless of whether the two premises are true,
the syllogism is still valid. The point is, if Hawking’s statement is true and
if aliens visit Earth, then it does follow that things will be bad for humans.

Writing a Syllogism
S
Suppose that Daniel Defoe’s premise in The Education of Women is true.
Also suppose that women are given the advantages of an education. What
A
cconclusion can you draw?

“I have often thought of it as one of the most barbarous customs in the

world, considering us as a civilized and a Christian country, that we deny
the advantages of learning to women. We reproach the sex every day with
folly and impertinence; while I am confident, had they the advantages of
education equal to us, they would be guilty of less than ourselves.”
The Education of Women, Daniel Defoe

SOLUTION
S
Here is one way to write this argument as a syllogism.
H

• Premise: If women had the same opportunity for education as men,

then they would be guilty of fewer offenses than men.
Daniel Defoe (1660–1731) was • Premise: Women have the same opportunity for education as men.
an English writer. He was the
author of what some consider
• Conclusion: Women are guilty of fewer offenses than men.

the first English-language novel,

Robinson Crusoe. He wrote more People who commit
than 500 works, including books, fewer offenses than men This diagram leaves
pamphlets, and journals, on various open the possibility
topics including women’s rights. that uneducated
Educated women might also
women commit fewer
offenses than men.

Checkpoint Help at

Write a syllogism that involves the following Daniel Defoe quote. Then draw
a set diagram to represent the syllogism.

“But justice is always violence to the party offending, for every

man is innocent in his own eyes.”
The Shortest-Way with the Dissenters, Daniel Defoe

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126 Chapter 3 The Mathematics of Logic & the Media

Deductive Reasoning Systems

U
Unlike biology, chemistry, and physics, mathematical systems are not
““discovered.” Each of the logical systems within mathematics was invented and
ddeveloped by humans. For instance, the logical system called Euclidean geometry
was invented and developed by the Greek mathematician Euclid around 300 b.c.
w
IIt is meaningless to talk about whether a mathematical system is “true.” No one
ccan prove that Euclidean geometry is true. What you can do is decide whether
tthe system is logically consistent, assuming its premises are true.
A logical system consists of four basic types of statements and concepts.

• Undefined terms • Defined terms

• Unproven postulates (statements) • Proven theorems (statements)

Analyzing a Logical System

E
Euclid understood that “you can’t prove everything.” At some point in
Destruction of the developing a logical system, you have to use words that are not defined and
Great Library of Alexandria you have to use premises that are not proven. For instance, Euclidean geometry
When Alexander the Great died in does not define the concepts of “point” or “line.” You just assume that you
323 B.C., his empire was divided know what they are. Here are the five premises (or postulates) on which
into different regions. Ptolemy I, Euclidean geometry is based.
one of Alexander’s generals, took
1. A unique straight line can be drawn between any two points.
control of Egypt. Euclid lived in the
cosmopolitan city of Alexandria 2. A straight line segment can be extended to any finite length.
and had access to libraries and 3. A circle can be described with any given point as its center
other mathematicians. The royal and any distance as its radius.
library in Alexandria is thought 4. All right angles are equal.
to have been the largest and
5. Parallel Postulate: At most, one line can be drawn through any
most comprehensive library in
point not on a given line parallel to the given line in a plane.
the ancient world. Its destruction
is considered to be one of the Write a syllogism that involves Euclid’s first postulate and illustrate it.
greatest losses of knowledge ever
experienced by humanity. SOLUTION
Here is one way to write a syllogism that involves Euclid’s first postulate.

• Premise: Given any two points, there is a unique line that contains them.
• Premise: You are given points A and B.
• Conclusion: There exists a unique line containing A and B.

Given two points Draw a line containing the points

A A
B B

Checkpoint Help at

Write a syllogism that involves Euclid’s fifth postulate and illustrate it.

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3.3 Deductive & Inductive Reasoning 127

Comparing Logical Systems

There are many possible “non-Euclidean” geometries. One is called spherical
geometry. The difference between Euclidean and spherical geometry lies in what
you assume the undefined term line to be and also in the Parallel Postulate. Here is
one set of postulates for spherical geometry.
1. A unique straight line can be drawn between any two points, unless the
points are antipodal, in which case they lie on many straight lines.
2. Any straight line segment can be extended indefinitely in a straight line.
(At some point, it will connect with itself, but it can go around the sphere
In spherical geometry, the an infinite number of times.)
undefined term line is imagined 3. A circle can be described with any given point as its center and any distance
to be a great circle of a sphere. as its radius, as long as the radius is less than half the circumference of
Longitude lines on Earth are great the sphere.
circles. Latitude lines, except for
the equator, are not great circles. 4. All right angles are equal.
5. Parallel Postulate: No two lines are parallel. (Any two intersect.)

Explain why the Spherical Parallel Postulate makes sense.

SOLUTION
If you were to tell someone that “no two lines are parallel,” that person might
think that you are irrational. What needs to be understood is that your
understanding of terms is different.

• In spherical geometry, you understand a “line” to be a great circle of

a sphere. For you, a “plane” is the surface of the sphere.

• In Euclidean geometry, you understand a “line” to be straight, like a

laser beam. For you, a “plane” is a flat surface.

• You both understand that two lines are “parallel” if they lie in the
same plane and don’t intersect.

To see why there are no parallel lines in

spherical geometry, imagine putting a
rubber band around a tennis ball. Make
it a great circle so that it has a maximum
circumference. Now try to put a second
rubber band (great circle) on the ball.
You can’t do it without intersecting the
first rubber band.

Checkpoint Help at

In Euclidean geometry, you know that the sides of a triangle are three straight
line segments. You also know that the 3 angle measures total 180°. Sketch
and describe a triangle in spherical geometry. What can you say about the
sum of the angle measures of a triangle in spherical geometry?

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128 Chapter 3 The Mathematics of Logic & the Media

Inductive Reasoning
Inductive reasoning occurs when you form conclusions based on repeated
patterns. Although this leaves open the possibility of arriving at false conclusions,
it is still the most common type of reasoning. Here is an example.
Conclusion Based on Pattern
• All of the fire I have felt is hot.
• Therefore, all fire is hot.

Hot things

Fire

Using Inductive Reasoning

Explain how the Salk vaccine trials used inductive reasoning.
Polio Cases in U.S.
70,000
The Jonas Salk polio vaccine field trials of 1954 were the largest and most
60,000 publicized clinical trials ever undertaken. Most of the reported polio cases
Number of cases

50,000 occurred in children under 10 years of age. So, the trial targeted about
1.8 million children in the first 3 grades of elementary school at 211 test sites.
40,000
In the experiment, about 440,000 children received the vaccine, about 200,000
30,000 received a placebo (a solution made to look like the vaccine, but containing no
20,000 virus), and about 1,190,000 received neither. There were fewer cases of polio
in children who received the vaccine than in children who received the placebo
10,000
or nothing. The results, announced in 1955, were that the Salk vaccine was
0 safe and effective in preventing polio.
1930
1935
1940
1945
1950
1955

Year
SOLUTION

New polio cases dropped to Students who Students who Students who
under 6000 in 1957, the first year received vaccine received placebo received nothing
after the vaccine was widely 440,000 200,000 1,190,000
available. In 1962, an oral vaccine
became available. Today there Polio cases: Polio cases: Polio cases:
27 per 100,000 71 per 100,000 51 per 100,000
are only a few polio cases in the
United States.
The announcement that the vaccine was both safe and effective was based on
inductive reasoning. In other words, it was assumed that the 1.8 million children
in the field trial were a good representation of all people.

Checkpoint Help at

Draw a set diagram that illustrates the inductive reasoning. Is the conclusion
correct? Explain your reasoning.

• All the tigers I have seen are orange with black stripes.
• Therefore, all tigers are orange with black stripes.

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3.3 Deductive & Inductive Reasoning 129

Using Inductive Reasoning

What comments can you make about the following article? Is the inductive
reasoning valid? Explain your reasoning.

Mediterranean Bluefin Tuna Stocks Collapsing Now as Fishing Season

Opens (April 2009), World Wildlife Fund
“As the Mediterranean’s bloated fishing fleets ready themselves for the opening
of the bluefin tuna fishery tomorrow, World Wildlife Fund (WWF) has released
an analysis showing that the bluefin breeding population will disappear by 2012
under the current fishing regime.
Global conservation organization WWF reveals that the population of
breeding tunas has been declining steeply for the past decade— and will be
wiped out completely in 3 years if fisheries managers and decision-makers
keep ignoring the warnings from scientists that fishing must stop.”

Atlantic Bluefin Tuna, East Stock

Spawning biomass (tonnes)

250,000

200,000

150,000

100,000

50,000

0
19 5
19 6
19 7
19 8
20 9
20 0
20 1
20 2
20 3
20 4
20 5
20 6
20 7
20 8
20 9
20 0
20 1
12
9
9
9
9
9
0
0
0
0
0
0
0
0
0
0
1
1
19

Year

SOLUTION
Here is the basic argument.

• The Atlantic bluefin tuna breeding population has declined for 10 years.

• The decline is due to commercial fishing.

• Breeding Atlantic bluefin tuna will disappear unless commercial

fishing stops.
This is a valid example of inductive reasoning. There are, of course, possible
errors in the reasoning. Perhaps claiming that the breeding population will
disappear is a bit alarmist. But common sense does indicate that the situation
is dire.

Checkpoint Help at

Describe other examples of the use of inductive reasoning in environmental

issues. In each case, clearly write the premises and the conclusion.

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130 Chapter 3 The Mathematics of Logic & the Media

3.3 Exercises
Supreme Court Cases In Exercises 1 and 2, complete the syllogism. Then
draw a set diagram to represent the syllogism. (See Example 1.)
1. Brown v. Board of Education 2. Citizens United v. Federal Election Commission

• Premise: All unequal public schools are • Premise: Any law that limits free speech is
unconstitutional. unconstitutional.

• Premise: All segregated public schools • Premise: Any corporate spending on independent
are unequal. political broadcasts is free speech.

• Conclusion: • Conclusion:

Marbury v. Madison In Exercises 3 and 4, use the excerpt from the

Supreme Court’s majority opinion in the case Marbury v. Madison.
(See Examples 1 and 2.)

“If, then, the courts are to regard the Constitution, and the
Constitution is superior to any ordinary act of the legislature,
the Constitution, and not such ordinary act, must govern the case
to which they both apply.”
Marbury v. Madison, 5 U.S. 137, 177, 178 (1803)

3. Suppose the Constitution is superior to any ordinary law. Also

suppose that an ordinary law conflicts with the Constitution.
What conclusion can you draw?

4. Explain why the Constitution must be considered superior to

any ordinary law for the Supreme Court to conclude that any
unconstitutional law is illegal.

Supreme Court Cases In Exercises 5–8, write a syllogism that involves the Supreme Court’s
decision. (See Examples 1 and 2.)
5. In United States v. Virginia, the Supreme Court held that the Virginia Military Institute’s
male-only admission policy was unconstitutional because it treated women unequally.

6. In Miranda v. Arizona, the Supreme Court held that statements made by Ernesto Miranda
were inadmissible because Miranda had not been advised of his Fifth Amendment rights
before he made the statements.

7. In Georgia v. Randolph, the Supreme Court held that it was unconstitutional for police to
search a house without a warrant if one resident consents but another resident objects.

8. In Roper v. Simmons, the Supreme Court held that the execution of an offender who was
under 18 years old at the time of the crime was “cruel and unusual punishment” and
therefore unconstitutional.

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3.3 Deductive & Inductive Reasoning 131

Roads and Towns In Exercises 9–16, consider the following postulates.

(See Examples 3 and 4.)

Postulate 1: Given any two towns, a road passes through them.

Postulate 2: Given any road, there is at least one town that the
road does not pass through.
Postulate 3: There are at least two towns.

9. What are the undefined terms?

10. Does a road need to be a straight line? Explain your reasoning.

11. Write a syllogism that involves the first postulate and illustrate it.

12. Write a syllogism that involves the second postulate and illustrate it.

13. Use deductive reasoning to explain why there must

be at least three towns.

14. Determine whether each model is valid. If a model is not valid, identify the postulate(s) that it
violates. Explain your reasoning.
a. b.

c. d.

Key: Town Road

15. Do the postulates guarantee a town at every intersection of two roads?

Explain your reasoning.

16. Consider the following replacement for Postulate 2.

Postulate 2: Given any town, there is at least one road that does not pass through the town.

a. Write a syllogism that involves the postulate and illustrate it.

b. At least how many towns must exist? Explain your reasoning.
c. At least how many roads must exist? Explain your reasoning.

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132 Chapter 3 The Mathematics of Logic & the Media

Dinosaurs In Exercises 17–22, use the map. (See Examples 5 and 6.)

General Locations of Fossil Findings for Select Dinosaurs

Troodon
Velociraptor
Giganotosaurus

17 th fossil findings to infer where each type

17. Use the locations of the
of dinosaur lived. Outline your inductive reasoning and draw a
set diagram for each type of dinosaur.

vee
18. Does the absence of Velociraptor fossils in North America prove
that Velociraptor did not live there? Explain your reasoning.

19. Giganotosaurus fossils have been dated to about 100 to Contrary

Co image
ontrary to the im popularized
mage popu ularized by the film
95 million years ago. What can you infer about the time Jurassic
Jur
rassic Park, Velo
Velociraptorr aactually had feathers
feathers.
period in which all Giganotosaurus lived? Outline your
inductive reasoning and draw a set diagram.

20. Troodon fossils have been dated to about 75 to 65 million years ago. What can
you infer about the time period in which all Troodon lived? Outline your inductive
reasoning and draw a set diagram.

21. Velociraptor fossils have been dated to about 75 to 71 million years ago. Is
it likely that Velociraptor encountered Troodon or Giganotosaurus? Explain
your reasoning.

22. Research the locations in which Tyrannosaurus rex fossils have been found and the
time period in which Tyrannosaurus rex lived. Is it likely that Tyrannosaurus rex
encountered Troodon, Velociraptor, or Giganotosaurus? Explain your reasoning.
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3.3 Deductive & Inductive Reasoning 133

Extending Concepts
Periodic Table In Exercises 23–30, use the periodic table of elements.
Period

Group
1 18
Nonmetals Metalloids
1 Alkali metals Halogens Chemical
2 13 14 15 16 17
Alkaline earth metals Noble gases Properties
2 Transition elements Lanthanides
Other metals Actinides • All discovered
alkali metals
3
react strongly
3 4 5 6 7 8 9 10 11 12
with water.
4
• All discovered
alkaline earth
5 metals are solid
at room
6 temperature.
• All discovered
7 noble gases are
odorless.
6 • All actinides
are radioactive.
7

23. Write a syllogism that involves potassium (element 19). Then draw a set diagram.

24. Write a syllogism that involves xenon (element 54). Then draw a set diagram.

25. Write a syllogism that involves radium (element 88). Then draw
a set diagram.

26. Write a syllogism that involves thorium (element 90). Then draw
a set diagram.

27. There are hypothetical alkali metals that have not been discovered.
Use inductive reasoning to draw a conclusion about all alkali metals,
discovered or undiscovered.

28. There are hypothetical alkaline earth metals that have not been
discovered. Use inductive reasoning to draw a conclusion about
all alkaline earth metals, discovered or undiscovered.

29. Suppose ununennium (hypothesized element 119) is an undiscovered

alkali metal. Write a syllogism that involves how ununennium reacts
with water. Use your conclusion from Exercise 27 as your first premise.

30. Suppose unbinilium (hypothesized element 120) is an undiscovered alkaline

earth metal. Write a syllogism that involves unbinilium’s state at room Xenon is used in high-intensity
temperature. Use your conclusion from Exercise 28 as your first premise. discharge headlamp bulbs.
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134 Chapter 3 The Mathematics of Logic & the Media

3.4 Fallacies in Logic

Recognize deductive fallacies.
Use set diagrams to detect fallacies.
Recognize fallacies in advertisements.

Deductive Fallacies
Study Tip A fallacy is an error in reasoning. This differs from a factual error, which is
In the first example at the simply being wrong about a fact. A deductive fallacy is a deductive argument
right, whether it rained or that is invalid. Here is an example.
did not rain is irrelevant. The
point is that the reasoning • Premise: When it rains, the ground gets wet.
is invalid. This type of fallacy • Premise: The ground is wet.
is called affirming the
consequent.
• Conclusion: Therefore, it must have rained.
Here is an example of valid reasoning.
• Premise: If P, then Q.
• Premise: Q • Premise: When it rains, the ground gets wet.
• Conclusion: Therefore, P. • Premise: It rained.
• Conclusion: Therefore, the ground got wet.
An inductive fallacy occurs when the premises do not provide enough support
for the conclusion.

Detecting a Fallacy
Is the logic in this description of lie detectors valid?

To detect lies, a polygraph test evaluates a person’s heart rate, breathing rate,
blood pressure, and perspiration on fingertips. Sometimes a polygraph test also
evaluates involuntary arm and leg movements and nervous tics, which often
occur while being asked difficult questions. When people lie, their heart rates
increase and they start sweating. So, when a polygraph test shows an increased
heart rate and sweating, you can conclude that the person is lying.

SOLUTION
This argument is not valid. It is the same type of fallacy as shown above: affirming
the consequent.

• Premise: When people lie, their heart rates increase and they start sweating.
• Premise: This man has an increased heart rate and is sweating.
• Conclusion: Therefore, he is lying.

Checkpoint Help at

Is the logic in this description of craters valid? Explain.

When meteors hit Earth, they form craters, some of which are
over a mile in diameter. The diameter of Crater Lake in Oregon
is about 5 miles. So, it must have been formed by a huge meteor.

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3.4 Fallacies in Logic 135

There are many types of deductive fallacies. If you take a formal course in logic,
you might encounter a dozen different types. Here is another example.

• Premise: When it rains, the ground gets wet.

Study Tip • Premise: It isn’t raining.

The type of fallacy at the

• Conclusion: Therefore, the ground is not wet.
right is called denying the When examining arguments, keep reminding yourself, “It’s not about whether
antecedent. the conclusion is true or false. It’s about whether the conclusion was deduced
• Premise: If P, then Q. in a logically valid way.”
• Premise: P is not true. Oddly, the following syllogism is valid.
• Conclusion: Therefore,
Q is not true. • Premise: When it rains, the ground gets wet.
• Premise: The ground is not wet.
• Conclusion: Therefore, it must not have rained.

Detecting a Fallacy
Is the logic in this Alan Turing quote valid?

“If each man had a definite set of rules of conduct by which he regulated his
life he would be no better than a machine. But there are no such rules, so men
cannot be machines.”
“Computing Machinery and Intelligence,” Alan Turing

SOLUTION
This argument is not valid. It is an example of denying the antecedent. In fact, in
his article “Computing Machinery and Intelligence,” Turing actually states that
this is an example of an invalid argument.

• Premise: If each man had a definite set of rules of conduct by which

Alan Turing was an English he regulated his life, he would be no better than a machine.
logician, cryptanalyst, and • Premise: There is no set of rules of conduct.
computer scientist. He is
often considered the father of
• Conclusion: Therefore, men cannot be machines.
modern computer science.
During World War II, Turing Checkpoint Help at
devised methods for breaking
German codes, and because Outline the invalid syllogism described in the article.
of this, some have called him
“the man who saved the world.” The buyer of a new vehicle brought claims against a manufacturer under
Ohio’s Lemon Law and for breaches of a warranty act. The trial court ruled in
favor of the defendant on both claims. The court of appeals analyzed the trial
court’s logic. The trial court first addressed the plaintiff’s Lemon Law claim
and determined that it was invalid. Next, the trial court concluded that since
the Lemon Law claim was not valid, the warranty act claim was not valid.
The court of appeals rejected the trial court’s reasoning, based on the fallacy
of denying the antecedent.
Summarized from “Conventional Logic: Using the Logical Fallacy of Denying
the Antecedent as a Litigation Tool,” Stephen Rice

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136 Chapter 3 The Mathematics of Logic & the Media

Fallacies and Set Diagrams

A set diagram can be helpful in determining whether an argument is valid
or invalid. Here is an example using a written argument.

Taxes fund necessary services such as police, schools, and roads.

Study Tip Therefore, taxation is necessary.
The type of fallacy at the
right is called a fallacy of First, outline the argument.
false cause or non sequitur.
Non sequitur is Latin for • Premise: Police, schools, and roads are necessary.
“it does not follow.” For • Premise: Taxes fund police, schools, and roads.
instance, just because taxes • Conclusion: Therefore, taxes are necessary.
can be used to fund police,
Then, organize the argument with a set diagram.
schools, and roads, it does
not follow that other things
(such as a state lottery)
Government issues
could not also be used as
funding sources.
Police, It does not follow
Necessary Tax-funded
schools, that tax funding
things things
roads is necessary.

Drawing a Set Diagram

Use a set diagram to analyze the conclusion of the study.

Teenagers who use a cell phone (for talking and texting) more than 15 times a
day are more prone to disrupted sleep, restlessness, stress, and fatigue.
Summarized from “Does Excessive Mobile Phone Use
Affect Sleep in Teenagers?,” Gaby Badre, MD, PhD

SOLUTION
Here is one way to analyze the conclusion of the study.

Teenage behavior
It does not follow
that the cell phone
Use cell calls caused the
Teens Have stress
phone 15à
p stress and fatigue.
in study and fatigue
tti
times a day

Checkpoint
Checkpo
oi Help at

Use a set diagram to analyze the conclusion of the argument.

Our society is filled with violence, and there is a lot of violence on TV.
It follows that the violence in society is caused by people watching TV.

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3.4 Fallacies in Logic 137

Perhaps the most common type of fallacy is one in which the second premise
does not refer to all the members of the category described in the first premise.
This type of fallacy is called an undistributed middle.

Drawing a Set Diagram

Use a set diagram to analyze the argument for placing Lee Grant on the
Hollywood blacklist.

McCarthyism is the practice of making accusations of subversion or

treason without proper evidence. It was originally coined to criticize
the anti-communist activity of Senator Joseph McCarthy. A famous
example of McCarthyism is the Hollywood blacklist, which was
associated with hearings by the House Un-American Activities
Committee. Actors who were put on the list had great difficulty
finding acting roles.
Lee Grant was one of the many actors who were blacklisted. She
was blacklisted for refusing to testify against her husband, who was
accused of being a communist. After several years, Grant was able
to return to film and ended up winning an Oscar for her role in
Lee Grant was born Lyova Shampoo (1975).
Rosenthal in New York City in
1927. Grant established herself
as an actress on Broadway in the SOLUTION
show Detective Story. She made
Here is one way to analyze this event.
her film debut in the movie version
of the same story.
• Premise: All communists refused to testify against other communists.

• Premise: Lee Grant refused to testify against an accused communist.

• Conclusion: Therefore, Lee Grant must have been a communist.

Actors

Actors who An actor who

Communists refused to refused to testify
testify might not have
been a communist.

Checkpoint Help at

In 1692, at the start of the Salem witch trials, several people were arrested and
accused of witchcraft. Their accusers claimed that young girls were having fits
whenever the accused were present. Analyze the argument against the accused.
Describe how it is an example of a fallacy of the undistributed middle. Illustrate
the argument with a set diagram.

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138 Chapter 3 The Mathematics of Logic & the Media

Fallacies in Advertisements
Manufacturers have both the need and the right to advertise their products.
Magazines, newspapers, television shows, Internet sites, and radio programs
depend on the revenue from advertisements. And yet, as a field, advertising is
filled with the use of logical fallacies. Moreover, it will most likely remain that
way because fallacies can be effective ways to sell products.

Analyzing an Advertisement

Study Tip In 1953, Marilyn Monroe was named “the Most Advertised Girl in the World” by
The type of fallacy in the the Advertising Association of the West. Is the advertisement a logical fallacy?
ad in Example 5 is called
appeal to authority or not original ad
celebrity. It often takes the
following form.
• Premise: A says that P LUSTRE-CREME is the
is true.
favorite beauty shampoo
• Premise: A is of 4 out of 5
authoritative.
top Hollywood stars...
• Conclusion: Therefore, and you’ll love it in its
P is true.
new Lotion Form, too!
To use an authority
legitimately, check for
the following.
1. The authority has
competence in an area,
not just popularity.
2. The judgment must be
within the authority’s A shampoo so rich you
expertise.
3. The authority must be
only need to ‘lather once’!
interpreted correctly.
4. Direct evidence is
available.
SOLUTION
Here is one way to look at the logic in the advertisement.

• Premise: If Marilyn Monroe uses a product, then you should use it.
• Premise: Marilyn Monroe uses Lustre-Creme shampoo.
• Conclusion: Therefore, you should use Lustre-Creme shampoo.
This is a valid syllogism. The problem is that the first premise is questionable.
As such, this type of appeal to celebrity is considered a logical fallacy.

Checkpoint Help at

Do you agree with the following policy? Explain your reasoning.

China has passed laws banning celebrities from appearing in ads for drugs.
A government spokesperson stated: “The move is to eradicate illegal drug
advertisements that exaggerate drug’s benefits and mislead customers.”

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3.4 Fallacies in Logic 139

Another type of logical fallacy that is often used in advertisements for products
or political candidates is called begging the question. Arguments with this fallacy
are circular. Here is a typical form.

• Premise: A is true because B is true.

• Conclusion: B is true because A is true.

Analyzing Political Advertisements

Analyze the following political advertisements.

In The Selling of the President,

SOLUTION
Joe McGinniss describes how If either of these ads makes you want to vote for the person, the ad is doing
Richard Nixon used marketing its job. Both ads are attractive, concise, and carry a message.
tactics in his 1968 presidential
campaign. Throughout the book, • Both ads appeal to emotion (a type of fallacy) by displaying the
American flag and by using the colors of the flag.
McGinniss claims that Nixon was
sold like a product, which was a • Both ads beg the question. The left ad assumes that America no longer
shocking idea at the time. represents the concept “of the people, by the people, and for the people.”
The right ad assumes there is corruption in D.C.
• The left ad also contains an appeal to authority, by using a quote from
Lincoln’s Gettysburg Address. The use of this quote implies that
Lincoln endorses the candidate.

Checkpoint Help at

Analyze the following political advertisements.

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140 Chapter 3 The Mathematics of Logic & the Media

3.4 Exercises
Iraq War In Exercises 1–8, outline the invalid syllogism
sm and identify
id the logical fallacy.
(See Examples 1 and 2.)
1. A politician states, “If something is not there,
you will not find it. We did not find weapons
of mass destruction in Iraq. So, there are no
such weapons in Iraq.”

ed
2. A representative states, “If Saddam had shipped
his weapons out of Iraq, we would not have
found them. We didn’t find Saddam’s weapons,ns,
so he must have shipped them out of Iraq.”

pons of mass destruction

3. A radio show host says, “If we found weapons
ns We haven’t found
in Iraq, it would prove that Iraq had such weapons.
weapons of mass destruction in Iraq, and this proves that Iraq did not
have such weapons.”

4. A political pundit states, “If the war in Iraq made America safer, there will have been no
major terrorist attack since we invaded. There hasn’t been any such attack. So, the war
made America safer.”

5. A talk show host says, “If you support the war in Iraq, you support America. The senator
doesn’t support the war, so he obviously doesn’t support America.”

6. An opinion columnist writes, “If a person is a

great leader, then that person will do what he or
she believes is right. George W. Bush did what
he believed was right. He was a great leader.”

7. A political science professor says, “If we had

overthrown Saddam in the first Gulf War, we
would not be fighting in Iraq today. It is clear
that we are fighting in Iraq as a consequence
of our decision not to end Saddam’s regime
in 1991.”

8. A senator states, “The United States invaded

Iraq on the premise that Saddam Hussein had
weapons of mass destruction. Saddam did not
Iraq has a rich cultural heritage. It was home to the ancient
i t have weapons of mass destruction, so the
city of Babylon. The lion shown above is from Babylon’s Ishtar United States should not have invaded Iraq.”
Gate, which was reconstructed at the Pergamon Museum in
Berlin, Germany.

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3.4 Fallacies in Logic 141

Everyday Fallacies In Exercises 9–16, draw a set diagram to analyze the conclusion.
(See Examples 3 and 4.)
9. When Jack is bluffing, he sets a chip on his cards. Jack set a chip
on his cards, so I know he’s bluffing.

10. When Rich wants a favor, he starts acting really friendly. Rich has
been acting really friendly today, so I know he wants something.

11. Greg’s friend Dylan is very conservative. Greg concludes that

everyone in Dylan’s family must be very conservative.

12. Erica awakens at midnight and discovers the power is out at

her house. She looks out her window and sees that all of her
neighbors’ windows are dark. She concludes that they must
have lost their power too.

13. Kyle is buying a dress for his wife. He knows she doesn’t
like the color blue. So, he picks out a yellow dress and
concludes that she will like it because it isn’t blue.

14. Kimberly’s mother doesn’t approve of boys with tattoos.

Kimberly’s new boyfriend doesn’t have any tattoos, so she
concludes that her mother will approve of him.

15. Tom is ordering pizza for his friends. He recalls that his
friend David doesn’t like pepperoni, so he orders a pizza
with mushrooms
ushrooms and concludes that David will eat it
because it doesn’t have pepperoni on it.

16. I am feeling sick this morning. It must be because

of the sushi I ate last night. Everyone who ate
the sushi must be sick by now.

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142 Chapter 3 The Mathematics of Logic & the Media

Commercial Advertising In Exercises 17–20, analyze the advertisement. (See Example 5.)
17. 18.

19. 20.

Campaign Posters In Exercises 21 and 22, analyze the political advertisement. (See Example 6.)
21. 22.

N. Landon for Senate

23. Weatherproof Ad Weatherproof Garment Company controversially displayed an ad in

Times Square showing President Obama wearing one of the company’s jackets without
his permission. The slogan on the ad was “A Leader In Style.” Analyze the logic of the
advertisement. (See Example 5.)

24. Commercial Advertising Find an example of a commercial advertisement and analyze

its logic. (See Example 5.)

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3.4 Fallacies in Logic 143

Extending Concepts
Other Fallacies Six types of fallacies are given. In Exercises 25–30, determine which fallacy applies.

Ad hominem: An argument that attacks Ad populum: An argument with the

the character of a person rather than premise that if a majority believes that
addressing the actual issue something is true, then it is true

Appeal to novelty: An argument that Composition: An argument that concludes

uses the premise that if something is that something is true for the whole because
new, it is automatically better it is true for the parts of the whole

False dilemma: An argument that only gives Self-refuting idea: A statement that is
two options when more than two are available false as a consequence of being held true

25. 26.
QUAYLE: “. . . I have as much experience
in the Congress as Jack Kennedy did when
he sought the presidency. . . .”
BENTSEN: “Senator, I served with
Jack Kennedy, I knew Jack Kennedy,
Jack Kennedy was a friend of mine.
Senator, you are no Jack Kennedy.”
1988 Vice-Presidential Debate

27. 28.
“The only thing I know is that I know “Either you are with us, or you are with
nothing.” the terrorists.”
Socrates George W. Bush

29. 30.
“We see that every city-state is a community
of some sort, and that every community is
established for the sake of some good (for
everyone performs every action for the sake
of what he takes to be good).”
Politics, Aristotle
(Translated by C.D.C. Reeve)

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144 Chapter 3 The Mathematics of Logic & the Media

3.3–3.4 Quiz

Boiling Point In Exercises 1–8, use the graph.

1. Suppose you live near sea level
(0 meters) and heat a pan of water Boiling Point of Water vs. Elevation
until it boils. 105

a. At what temperature will you 100

observe the water boiling? 95

Temperature (íC)
b. What might you infer about 90
the boiling point of all water? 85
c. Draw a set diagram that represents 80
the inference from part (b).
75

2. The elevation of La Paz, Bolivia is 70

about 3600 meters above sea level. 0
0 2000 4000 6000 8000 10,000
a. At what temperature will a resident Elevation above sea level (meters)
of La Paz observe water boiling?
b. What might the resident infer
about the boiling point of all water?
c. Draw a set diagram that represents the inference from part (b).

3. Write a syllogism that involves the boiling point of water at sea level (0 meters).

4. Write a syllogism that involves the boiling point of water in La Paz (about 3600 meters
above sea level).

5. Write a syllogism that involves the relationship between elevation and boiling point.

6. Is the logic in the statement valid? Draw a set

diagram to analyze the argument. If the elevation decreases, the boiling point increases.
The boiling point increased, so the elevation must
have decreased.

7. As elevation increases, atmospheric pressure decreases. Write

a syllogism that involves the relationship between atmospheric
pressure and elevation.

8. Suppose you perform the following experiment. You place water

in a pressure cooker at an elevation of 5000 meters above sea level
and adjust the pressure in the cooker to 1 atmosphere, which is the
pressure at sea level (0 meters). When you heat the water, it boils
at 100ºC. What can you conclude?

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Chapter 3 Summary 145

Chapter 3 Summary

Section Objectives How does it apply to you?

Using a set diagram to visualize a statement can help
Use a union of two sets to
you recognize what is in one set or in another set.
represent or.
Section 1

(See Example 1.)

Using a set diagram to visualize a statement can help

Use an intersection of two sets to
you recognize what is in one set and in another set.
represent and.
(See Example 3.)

Use the complement of a set to Using a set diagram to visualize a statement can help you
represent not. recognize what is not in a set. (See Examples 5 and 6.)

Using a set diagram to analyze a statement can help you

Analyze statements that have the
recognize what is and is not being said in the statement.
Section 2

term all.
(See Examples 1 and 2.)

Analyze statements that have the Using a set diagram to analyze a statement can help you make
term some or many. other statements. (See Examples 3 and 4.)

Using a set diagram to analyze a statement can help you

Analyze negations of statements.
negate the statement. (See Examples 5 and 6.)

Use deductive reasoning with Using a set diagram to visualize why syllogisms are valid can
Section 3

syllogisms. help you draw other conclusions. (See Examples 1 and 2.)

Know how a deductive reasoning Logical systems help you understand how different branches
system is created. of mathematics were formed. (See Examples 3 and 4.)

You need to be able to make logical conclusions based on

Use inductive reasoning.
repeated patterns. (See Examples 5 and 6.)

You need to be able to distinguish valid logic from invalid

Recognize deductive fallacies.
Section 4

logic. (See Examples 1 and 2.)

Use set diagrams to detect Using a set diagram can help you determine whether
fallacies. statements are valid or invalid. (See Examples 3 and 4.)

Recognize fallacies in You need to be able to distinguish between valid and invalid
advertisements. statements in advertising. (See Examples 5 and 6.)

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146 Chapter 3 The Mathematics of Logic & the Media
ia

Chapter 3 Review Exercises

Section 3.1
Oiled Birds In Exercises 1 and 2, use the information below.
Birds were collected in areas affected by the Deepwater Horizonizon
oil spill in the Gulf of Mexico. Through November 2, 2010, a
y oiled,
report indicates that of the birds collected, 4342 were visibly
6104 were dead, and 2263 were both visibly oiled and dead.

1. Draw a set diagram that shows the information.

2. How many birds were found visibly oiled or dead?

Kemp’s Ridley Sea Turtles The set diagram shows characteristics of sea turtles upon
arrival at an oil spill rehabilitation center. In Exercises 3–6, use the set diagram.

Kemp’s ridley Respiratory

sea turtles problems
3
8 17
1
2 5

8
Kemp’s ridley sea turtles are an endangered species. They
Vision problems
were adversely affected by the 2010 Deepwater Horizon
oil spill, as they lay eggs on Mexican beaches and forage
from the Yucatan Peninsula to southern Florida.

3. How many are Kemp’s ridley sea turtles? 4. How many are not Kemp’s ridley sea turtles?

5. How many sea turtles have respiratory problems and vision problems?

6. How many sea turtles have respiratory problems or vision problems?

U.S. Coast Guard In Exercises 7 and 8, use the information below.

The U.S. Coast Guard (USCG) sends British Petroleum bills
that demand payment for equipment and personnel costs Nov/Dec 2010 Costs: $9,843,486.77
incurred due to the Deepwater Horizon oil spill. Information Equipment Costs:
regarding bill #9 from January 11, 2011, is shown.
• USCG Aircraft: $25,623.00
7. Draw a set diagram that shows the information. • USCG Vehicle: $43,484.92

8. How much did the USCG charge for the use of its personnel?

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Chapter 3 Review Exercises 147

Section 3.2
Ultraviolet Radiation In Exercises 9–14, use a set diagram to analyze the statement
about tanning.
9. Suntanning is a result of exposure to ultraviolet (UV) radiation, which is a type of
electromagnetic (EM) radiation. All EM radiation is made up of small particles that
travel in a wave-like pattern at the speed of light.

Electromagnetic Spectrum
Visible light

Name of Radio waves Microwaves Infrared Ultraviolet X-rays Gamma

wave

10 2 10 1 10 0 10 Ź1 10 Ź2 10 Ź3 10 Ź4 10 Ź5 10 Ź6 10 Ź7 10 Ź8 10 Ź9 10 Ź10 10 Ź11 10 Ź12

Wavelength (meters)

10. UV radiation from the Sun consists of three main types: UVA, UVB, and UVC. All
UVC and some UVB are absorbed by Earth’s ozone layer. Most tanning lamps emit
both UVA and UVB rays, but some emit only UVA rays.

11. UV radiation damages DNA in cells. Your body

responds by increasing the production of melanin, The UV radiation
which causes tanning. UV radiation can also that penetrates your
cause premature skin aging and skin cancer. skin is made up of
UVA and UVB rays.
UVB
12. UV radiation can also damage your eyes. Skin
All UVB rays are absorbed by the cornea, layers UVA
but UVA rays pass through to the lens.

13. Sunscreens reduce the amount of UV radiation

that penetrates the skin. Every broad-spectrum
sunscreen blocks both UVA and UVB rays.

14. Some people tan easier than other people. Some people burn easier than other people.

Tanning In Exercises 15 and 16, use a set diagram to visualize the negation
of the statement about tanning.
15. My best friend usually has a farmer’s tan or a trucker’s tan.

16. When I go to the beach, I will wear sunscreen with a sun protection factor (SPF) of
at least 25 and I will use a beach umbrella to reduce my exposure to UV radiation.

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148 Chapter 3 The Mathematics of Logic & the Media

Section 3.3
Universal Gravity In Exercises 17 and 18, use the excerpt.

“Why should that apple always descend perpendicularly

to the ground, thought [Newton] to himself; occasioned
by the fall of an apple, as he sat in a contemplative mood.
Why should it not go sideways, or upwards? But constantly
to the earth’s center? Assuredly, the reason is, that the earth
draws it. There must be a drawing power in matter. . . . If
matter thus draws matter; it must be in proportion of its
quantity. Therefore, the apple draws the earth, as well as
the earth draws the apple.”
Memoirs of Sir Isaac Newton’s Life, William Stukeley

17. How does Newton conclude that there is a drawing power in matter?
What type of reasoning is this? Explain.

18. How does Newton conclude that, in addition to Earth pulling on the apple,
the apple is pulling on Earth? What type of reasoning is this?

Laws of Motion In Exercises 19–23, use Newton’s Laws of Motion.

Law 1: Every object in uniform motion will remain in uniform motion unless
an external force acts on it.
Law 2: Force equals mass times acceleration.
Law 3: For every action, there is an equal and opposite reaction.

19. What type of reasoning do you think Newton used to arrive at his three laws
of motion? Explain.
20. What type of reasoning do you think Newton used to
apply his three laws of motion? Explain.

21. Write a syllogism that involves

Newton’s first law.

22. Write a syllogism that involves

Newton’s third law.

23. In the twentieth century, it was discovered

that Newton’s second law does not hold
at high velocities. Explain this revelation
in the context of inductive reasoning.

24. Scientific Method Explain the relationship between inductive

and deductive reasoning in science.

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Chapter 3 Review Exercises 149

Section 3.4
Logical Fallacies In Exercises 25–28, draw a set diagram to analyze the conclusion.
25. When there is a lot of traffic, Laura is late for her appointments. Laura is late for her
appointment, so there must have been a lot of traffic.

26. Anthony is from Texas. Texas is a “red” state. Therefore, Anthony is a Republican.

27. When Lynn is lying to me, she can’t look me in the eye. Lynn’s not looking me in the
eye, so I know she’s lying.

28. Marcus’s girlfriend does not like horror movies. So, he rents an action movie and
concludes that she will like it because it is not a horror movie.

Advertisements In Exercises 29–32, analyze the advertisement.

29. 30.

Orange
Juice
with Pulp

Why would you settle for less?

31. 32.

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4 The Mathematics of
Inflation & Depreciation

4.1 Exponential Growth

Make a table showing exponential growth.
Draw a graph showing exponential growth.
Find an exponential growth rate.

4.2 Inflation & the Consumer Price Index

Use a consumer price index.
Use a graph to interpret a consumer price index.
Compare inflation to the value of the dollar.

4.3 Exponential Decay

Make a table and graph showing exponential decay.
Calculate and use half-life.
Find an exponential decay rate.

4.4 Depreciation
Use straight-line depreciation.
Use double declining-balance depreciation.
Use sum of the years-digits depreciation.

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U.S. Federal
Federa Debt (1940–2010)
14

Debt (trillions of dollars)

12

10

0
1940 1950 1960 1970 1980 1990 2000 2010
Year

Example 6 on page 167 traces the federal debt from 1940 through
2010. Considering the consumer price index and inflation, was the
government more in debt in 2010 than in 1983?

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152 Chapter 4 The Mathematics of Inflation & Depreciation

4.1 Exponential Growth

Make a table showing exponential growth.
Draw a graph showing exponential growth.
Find an exponential growth rate.

Calculating Exponential Growth

A quantity has exponential growth when the quantity increases by the same
percent from one time period to the next.
Study Tip
Be sure you see that the Formula for Exponential Growth
rate of growth is written in
decimal form. For instance, A quantity A that has exponential growth can be modeled by
a rate of 4% is written A = P(1 + r)n.
as 0.04.

A measures P is the initial r is the rate (%) n is the

the quantity value of A, of growth, in elapsed
at any time. when n = 0. decimal form. time.

Making a Table
The growth rate of a bacteria culture is 52% each hour. Initially, there are two
bacteria. Make a table showing how many bacteria there are each hour for up
to 12 hours.

SOLUTION
The formula for this exponential growth is
A = P(1 + r)n = 2(1 + 0.52)n. P = 2, r = 52% = 0.52

Hours, n Formula Number of Bacteria

0 A = 2(1.52)0 A=2 A nonzero
1 A = 2(1.52) 1
A=3 number raised
to an exponent
2 A = 2(1.52)2 A=4
of 0 is defined
...
...

...

to be 1. Try it on
10 A = 2(1.52)10 A = 131 your calculator.
11 A = 2(1.52) 11
A = 200
12 A = 2(1.52) 12
A = 304

Checkpoint Help at

The bacteria culture grows exponentially for a full day. How many bacteria
are in the culture?

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4.1 Exponential Growth 153

Using a Spreadsheet
The following excerpt is from The Ring of Truth: An Inquiry into How We Know
What We Know by Philip and Phylis Morrison.

“Chef Mark kneaded high-gluten white flour carefully along with the
other ingredients of noodle dough in correct proportion: three cups of flour,
half as much water, one-quarter teaspoon each of salt and baking soda. He
vigorously swung and stretched the lump of dough out into a heavy single
strand the length of his full two-arm span. Then he folded that long thick
strand in half, and pulled the dough out again into its original length, so that
two thinner strands now passed from one hand to the other. Repeat, repeat,
repeat . . .
Chef Mark: Hello, everybody. I am the chef of the Dragon House in
Wildwood, New Jersey. Today I will make the kind of noodles called so.
Make the dough strong and smooth, keep the dough smooth and strong,
and you will have noodles on the table.
Philip Morrison (1915–2005) was a
Fold one time: the dough becomes two noodles. Two times, it
professor of physics at MIT and a
becomes four noodles. Three, four times . . . ten, eleven, now twelve
member of the Manhattan Project.
doublings, or four thousand and ninety-six noodles.”
His works include the film Powers
of Ten (1977) and the 1987 PBS
television series The Ring of Truth. Use a spreadsheet to illustrate
ate the numb
number of dragon’s beard noodles
in each folding.
A B
SOLUTION 1 Foldings, n Number of Noodles
The number of noodles doubles bl 2 0 1
with each folding. This means 3 1 2
that the rate of growth is 100%. 4 2 4
5 3 8
A = 1(1 + 1)n 6 4 16
7 5 32
Initial number Number of 8 6 64
of noodles foldings 9 7 128
10 8 256
Entering this formula into a 11 9 512
spreadsheet produces the 12 10 1024
table shown. 13 11 2048
14 12 4096
15

Checkpoint Help at

Analyze the following statement, taken from the Morrisons’ book. Is the claim
Use a spreadsheet to justify your answer.
true? Us

“The tantalizing nature of the doubling process is that the

subdivision is so rapid. Some forty-six doublings would make
noodles of true atomic fineness, in principle. But note that such
an incredible feat would produce not a mere few miles of dragon’s
beard, but noodles long enough to stretch to Pluto and beyond!”

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154 Chapter 4 The Mathematics of Inflation & Depreciation

Graphing Exponential Growth

While exponential growth often has a low growth rate (as in savings accounts), it
can also have a dramatic growth rate. One example is the world flu pandemic of
1918–1920 in which 3–5% of Earth’s population died. Another is the chain
reaction that occurs during nuclear fission. Example 3 describes yet another
example—that in which a species multiplies rapidly.

Graphing Exponential Growth

In Australia, mice breed from August to May, which is about 42 weeks. For
reasons that are not entirely known, every 3 or 4 years, the mouse population
explodes and produces a plague of millions of mice. One breeding pair of mice
and their offspring can produce 500 mice in just 21 weeks, which is a rate of
30% per week. At this rate, how many mice can one breeding pair produce in
42 weeks? Graph the results.

SOLUTION
In the Australian grain belt, Mouse Plague
mouse population levels Use a spreadsheet to 140,000
1
are normally low. Favorable evaluate the formula
130,000
seasonal conditions, however, A = 2(1 + 0.3)n
can trigger extensive breeding. 120,000
from n = 0 to n = 42.
Mouse plagues erupt about
The population after
every three years there. 110,000
42 weeks is about
122,082. Then use the 100,000
spreadsheet to graph
90,000
the results as shown.
Number of mice

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0
0 4 8 12 16 20 24 28 32 36 40 44
Week

Checkpoint Help at

How many mice can be produced by 1000 breeding pairs in 42 weeks?

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4.1 Exponential Growth 155

Graphing Exponential Growth

In 1975, Gordon Moore said that the number of transistors that can be placed
inexpensively on an integrated circuit will double approximately every 2 years.
This trend is known as Moore’s Law and has continued for more than 35 years.
One explanation for the accuracy of Moore’s prediction is that the law is used
in the semiconductor industry to guide long-term planning and to set goals
for research and development. In this sense, the law has been a self-fulfilling
pprophecy.
In 1978, the Intel® 8086 held 29,000 transistors on an integrated circuit.
According to Moore’s Law, how many transistors could be placed on an integrated
circuit in 2010? Graph the results.

SOLUTION
From 19
1978 to 2010, the number of transistors doubled 16 times.

Gordon Moore is a cofounder A B

Transistors on an
of © Intel Corporation. In 1954, Number of
Integrated Circuit
Moore received a Ph.D. in 1 Ye
Year Transistors
2,000,000,000
chemistry and physics from 2 1978 29,000
Caltech. After his success in the 3 1980 58,000 1,800,000,000
semiconductor industry, Moore 4 1982 116,000 1,600,000,000
and his wife donated $600 million 5 1984 232,000

Number of transistors
1,400,000,000
0
to Caltech, the largest gift ever to 6 1986 464,000
an institution of higher education. 7 1988 928,000 1,200,000,000
0
8 1990 1,856,000 1,000,000,000
0
9 1992 3,712,000
800,000,000
10 1994 7,424,000
11 1996 14,848,000 600,000,000
12 1998 29,696,000 400,000,000
13 2000 59,392,000
200,000,000
14 2002 118,784,000
15 2004 237,568,000 0
1978
1982
1986
1990
1994
1998
2002
2006
2010
16 2006 475,136,000
17 2008 950,272,000
Year
18 2010 1,900,544,000
19
According to Moore’s Law, about 2 billion transistors could be placed on
an integrated circuit in 2010.

Checkpoint Help at

Discuss the following claim that Moore’s Law will reach its limit.
Disc

“Moore’s Law, the central driver of our age, is based on the idea that
circuit lines can be drawn ever-closer together. But there has to be a
limit. The atomic scale. You can’t make a circuit smaller than an atom.”
“Moore’s Law Reaches its Limit with Quantum Dot Amplifier,”
Dana Blankenhorn

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156 Chapter 4 The Mathematics of Inflation & Depreciation

Finding an Exponential Growth Rate

Exponential Growth Rate

Study Tip If A0 and A1 are the quantities for any two times, then the growth rate between
In mathematics, numbers
those times, r, is given by
in a sequence are often A
denoted by letters with —1 = 1 + r.
A0
subscripts. For instance, the
numbers in an exponential
growth sequence can be
denoted by Finding an Exponential Growth Rate
A0, A1, A2, . . . An−1, An.
You purchase 100 shares of a stock for $4.35 per share. One month later, the value
A0 is read as “A sub zero.” of the stock is $4.55 per share.
a. Linear Growth:
Growth The value of the stock continues to increase by the same dollar
amountt each m
month. How much will your investment be worth in 2 years?
b. Exponential Growth:
G The value of the stock continues to increase by the same
percentt each month.
m How much will your investment be worth in 2 years?

4.55
— ≈ 1.046
4.35
SOLUTION
a. Linear Grow
Growth: If the stock b. Exponential Growth: The rate of
continues to iincrease by growth from $4.35 to $4.55 is about
month, each share will
$0.20 per mo 4.6%. If the stock continues to grow
4.35 + 24(0.2) = $9.15.
be worth 4.3 at this rate, in 2 years each share will
investment will be worth
So, your inv be worth 4.35(1.046)24 = $12.80.
00(9. 5) = $915.00.
100(9.15) So, your investment will be worth
about 100(12.8) = $1280.00.

Stocks Stocks
1400 1400
Linear Exponential
1200 Growth: 1200 Growth:
$915 $1280
stment value

Investment value

1000 1000

800
80 800
Investment

600
60 600

400 400

200 200

0 0
0 4 8 12 16 20 24 0 4 8 12 16 20 24
Month Month

Checkpoint Help at

Using each type of growth, how much will the stock be worth in 4 years?
Illustrate each type with a graph.

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4.1 Exponential Growth 157

Finding an Exponential Growth Rate

Moore’s Law states that the number of transistors that can be placed inexpensively
on an integrated circuit will double every two years (see Example 4 on page 155).
What is the annual rate of growth represented by Moore’s Law?
The ancient Greeks were able
SOLUTION
to prove that the square root of
2 cannot be represented by a As it turns out, the answer to this question has a fascinating history in mathematics.
fraction like 707/500. They were The question comes down to this: Can you find a number whose square is 2?
also able to construct a line
segment with a length of exactly Square
—
√2 units. To do this, draw a Root of 2
square with side lengths of 1 unit. —
Using the Pythagorean Theorem, The answer is denoted by √2 , which is approximately 1.414213562. So, the
it follows that the length of —each annual rate of growth for Moore’s Law is about 41.42%.
diagonal of the square is √2 units.

Transistors on an Integrated Circuit

2,000,000,000
its
un

1 unit
2

1,800,000,000

1,600,000,000

1 unit
1,400,000,000
Number of transistors

1,200,000,000

1,000,000,000

800,000,000

600,000,000

Moore’s Law:
400,000,000 Annual Growth
Rate of 41.42%
200,000,000
Study Tip
Here are the first 201 digits 0
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010

of the square root of 2.

1.4142135623 7309504880 Year
1688724209 6980785696
7187537694 8073176679
7379907324 7846210703
Notice that the graph is similar to the graph obtained in Example 4 on page 155.
8850387534 3276415727
3501384623 0912297024
9248360558 5073721264
4121497099 9358314132 Checkpoint Help at
2266592750 5592755799
9505011527 8206057147 Using an initial value of 29,000 in 1978 and an annual growth rate of 41.42%,
how many transistors could be placed on an integrated circuit in 2010?

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158 Chapter 4 The Mathematics of Inflation & Depreciation

4.1 Exercises
Gossip Gossip is informal conversation, usually about the personal
details of other people’s lives. Gossip tends to spread very quickly and
can be distorted and exaggerated from person to person. In Exercises 1– 4,
use the following information. (See Example 1.)

You win the lottery and share the news with

three family members. You want to keep it
a secret until you cash in your ticket and do
all the paperwork. Somehow your secret gets
out, and the number of people who hear about
your good fortune grows by 25% each hour.

1. Write a formula that can be used to model

the exponential growth of the gossip about
you winning the lottery.

2. Use the formula from Exercise 1 to

complete the table.

Time, n Informed People

0 hr 3
3. The gossip about you winning the lottery continues to
grow exponentially. How many people will know about 2 hr
you winning the lottery after 24 hours?
4 hr
4. Suppose the gossip growth rate is changed from 25% each
6 hr
hour to 50% each hour. Does the second column of the
table double? Explain your reasoning. 8 hr

A B
5. Celebrity Wedding As a result of the Internet and
1 Minutes, n Informed People modern technology, gossip spreads much faster today
2 0 100 than it did a few decades ago. This is especially true
3 3 with news from Hollywood. Suppose a celebrity has a
4 6 private, unannounced wedding with 100 guests. Once
5 9 the news breaks, the number of people who know
6 12 about the wedding grows by 45% each minute. Use
7 15 a spreadsheet to illustrate the number of informed
8 18 people every 3 minutes for up to 30 minutes.
9 21 (See Examples 1 and 2.)
10 24
11 27
12 30 6. Social Network Do you think social networking
websites and blogs are effective ways to communicate
or get information? Explain your reasoning.

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4.1 Exponential Growth 159

Pandemic A pandemic is an outbreak of an infectious disease or a condition that

spreads through a large part of the human population. There have been numerous
pandemics throughout history such as smallpox and tuberculosis. Current pandemics
include HIV and certain strains of influenza. Once a pandemic reaches Phase 6, the
number of infected people can grow exponentially. In Exercises 7–10, use exponential
growth models. (See Examples 3 and 4.)

Stages of a Pandemic
Interpandemic period
Phase 1: No new influenza virus subtypes have been detected in humans. An influenza virus subtype that
has caused human infection may be present in animals. If present in animals, the risk of human infection or
disease is considered to be low.
Phase 2: No new influenza virus subtypes have been detected in humans. However, a circulating animal
influenza virus subtype poses a substantial risk of human disease.
Pandemic alert period
Phase 3: Human infection(s) with a new subtype but no human-to-human spread, or at most rare instances
of spread to a close contact.
Phase 4: Small cluster(s) with limited human-to-human transmission but spread is highly localized,
suggesting that the virus is not well adapted to humans.
Phase 5: Larger cluster(s) but human-to-human spread still localized, suggesting that the virus is becoming
increasingly better adapted to humans but may not yet be fully transmissible (substantial pandemic risk).
Pandemic period
Phase 6: Pandemic: increased and sustained transmission in general population.
Source: Centers for Disease Control and Prevention

7. From June 2009 through August 2010, the swine flu (H1N1) was considered a pandemic
by the World Health Organization. Ten people in a community are infected with the swine
flu. The next day, 26 people are infected. The growth rate is 160% per day. At this rate,
how many people will be infected in 1 week? Graph the he results.

8. Use the rate in Exercise 7 to find the number of people who

will be infected after 1 week when the initial number of
people infected is 50.

9. The 1918–1920 flu pandemic, commonly known as thee

Spanish flu, killed about 40 million people worldwide.
That is more than twice the number of lives claimed
by World War I. Estimates for the growth rate vary.
Suppose 2 people are infected and the number of infected
ted
people triples every 3 days. How many people will
be infected in 21 days? Graph the results.

10. Use the rate in Exercise 9. How many people will

be infected in 42 days?

11. Graph Describe the graph of an exponential growth model.

12. Growth Rate Many factors affect the spread of a disease.

ase. Describe
some factors that would influence the growth rate of an infectious To help prevent the spread of germs, you
disease. Would these factors increase or decrease the growth rate? should cough or sneeze into your elbow.

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160 Chapter 4 The Mathematics of Inflation & Depreciation

Investing Investments often grow exponentially. In Exercises 13–18, use exponential

growth rates. (See Examples 5 and 6.)
13. You open a savings account and deposit $1250.00. One year later, the balance
in the account is $1262.50. No other transactions were posted to the account.
What is the annual rate of growth for the savings account?

14. You open a savings account and deposit $4200.00. One month later,
the balance in the account is $4208.40. No other transactions were posted
to the account. What is the monthly rate of growth for the savings account?

15. You buy 50 shares of stock for $18.25 per share. One month later, the value
of the stock is $18.98 per share.
a. The value of the stock continues to increase by the same dollar amount
each month. How much will your investment be worth in 1 year?
b. The value of the stock continues to increase by the same percent
each month. How much will your investment be worth in 1 year?

16. You buy 65 shares of stock for $12.00 per share. One month later, the value of the
stock is $12.78 per share.
a. The value of the stock continues to increase by the same dollar amount each
month. How much will your investment be worth in 3 years?
b. The value of the stock continues to increase by the same percent each month.
How much will your investment be worth in 3 years?

17. During the first year of operation, a company makes a profit of $40,000. During the
third year of operation, the company makes a profit of $120,000. Estimate its annual
rate of growth.

18. You buy a coin collection for $10,000. Two years later, you sell the coin collection
for $12,500. Estimate its annual rate of growth.

119. Mathematical Models Mathematical models rarely match real-life data

perfectly. In general, a model will give an approximate value for each input.
The table shows the balances of an investment account at the end of six
continuous years. Would the data in the table be better represented by a linear
growth model or an exponential growth model? Explain your reasoning.

Year 2006 2007 2008 2009 2010 2011

Balance $11,503 $12,348 $13,335 $14,293 $15,024 $15,841

20. Risk Aversion Investing in the stock market can

be nerve-racking due to the uncertainty of how
a stock will perform. A risk-averse investor
might put money in bonds or a savings
account with a low but guaranteed interest rate.
How would you invest a $10,000 windfall?
Explain your reasoning.

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4.1 Exponential Growth 161

Extending Concepts
Logistic Growth In general, the size of a population (people, bacteria, cancer cells,
etc.) follows a logistic growth pattern. The graph illustrates the growth patterns of a
logistic curve. In Exercises 21–23, use the graph.
21. Compare an exponential curve to a
logistic curve. Logistic Curve

22. Why is the size of a population over

Population size
time better represented by a logistic
growth model than an exponential Later growth
growth model? Early growth approaches zero
is rapid
Growth begins
23. Based on the information in the table, to slow
what part of the graph represents the
world population? Explain.
Time
World Population Annual
Year
(in billions) Growth Rate
1980 4.5 1.8%

1985 4.9 1.7%

1990 5.3 1.6%

1995 5.7 1.4%

2010 6.9 1.1%

24. Example 6 To find the annual growth rate A = P(1 + r)n Formula for exponential growth
represented by Moore’s Law, use the formula 2P = P(1 + r)2 Substitute 2P for A and 2 for n.
for exponential growth, A = P(1 + r)n. Because
2P P(1 + r)2
the number of transistors doubles every 2 years, —=— Divide both sides by P.
P P
you can substitute 2P for A and 2 for n in the
formula. Then solve for r as shown. Suppose the 2 = (1 + r)2 Simplify.
number of transistors triples every two years. —
√2 = 1 + r Take the square root of each side.
What is the annual growth rate? —
√2 − 1 = r Subtract 1 from each side.

Year Tuition Tuition In Exercises 25 and 26, use the table.

1 $6200.00 25. What is the annual growth rate of tuition?

3 $8252.20
26. At this rate, what will tuition be in three more years?

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162 Chapter 4 The Mathematics of Inflation & Depreciation

4.2 Inflation & the Consumer Price Index

Use a consumer price index.
Use a graph to interpret a consumer price index.
Compare inflation to the value of the dollar.

Reading a Consumer Price Index

Inflation is a rise in the general level of prices for goods and services. A
consumer price index (CPI) is used as a measure of inflation.
The U.S. Bureau of Labor Statistics defines a CPI as “a measure of the average
change over time in the prices paid by urban consumers for a market basket of
consumer goods and services.” The Bureau of Labor Statistics lists
many different CPIs. Here is one for all goods and services.
(Note: The base year is 1983.)

UNITED STATES BUREAU OF LABOR STATISTICS

Year CPI Year CPI Year CPI Year CPI
1931 15.2 1951 26.0 1971 40.5 1991 136.2
1932 13.7 1952 26.5 1972 41.8 1992 140.3
1933 13.0 1953 26.7 1973 44.4 1993 144.5
1934 13.4 1954 26.9 1974 49.3 1994 148.2
1935 13.7 1955 26.8 1975 53.8 1995 152.4
1936 13.9 1956 27.2 1976 56.9 1996 156.9
1937 14.4 1957 28.1 1977 60.6 1997 160.5
1938 14.1 1958 28.9 1978 65.2 1998 163.0
1939 13.9 1959 29.1 1979 72.6 1999 166.6
1940 14.0 1960 29.6 1980 82.4 2000 172.2

1941 14.7 1961 29.9 1981 90.9 2001 177.1

1942 16.3 1962 30.2 1982 96.5 2002 179.9
1943 17.3 1963 30.6 1983 99.6 2003 184.0
1944 17.6 1964 31.0 1984 103.9 2004 188.9
1945 18.0 1965 31.5 1985 107.6 2005 195.3
1946 19.5 1966 32.4 1986 109.6 2006 201.6
1947 22.3 1967 33.4 1987 113.6 2007 207.3
1948 24.1 1968 34.8 1988 118.3 2008 215.3
1949 23.8 1969 36.7 1989 124.0 2009 214.5
1950 24.1 1970 38.8 1990 130.7 2010 218.1

Reading a Consumer Price Index

Was the Great Depression (1930s) a time of inflation?
This famous photograph came
to represent the hardship of the SOLUTION
Great Depression in America. It Using the CPI, you can see that the prices of consumer goods and services did not
was taken by Dorothea Lange rise during the 1930s. In fact, from 1931 through 1939, prices fell slightly. So, the
in 1936. The photograph is of Great Depression was not a time of inflation.
a migrant worker, Florence
Thompson, and three of her
Checkpoint Help at
seven children. Florence was
32 years old at the time the
During which of the eight decades shown in the CPI did prices increase by the
photo was taken.
greatest percent? Explain your reasoning.

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4.2 Inflation & the Consumer Price Index 163

The primary use of a CPI is to compare prices for goods and services between
two different years. For instance, you can use a CPI to determine the hourly rate in
2010 that was equivalent to $15 per hour in 1980.

Calculating Prices
If you know the price of an item or service in year A, then the price of that
same item in year B is
CPI in year B
Price in year B = —— (price in year A).
CPI in year A

.and .com
You can access an inflation calculator at [Link].

Calculating an Inflated Price

Your grandfather bought a section (640 acres) of land in Montana in 1942 for
$5000. You inherited the property in 2010. The property was evaluated to be worth
$2,400,000. Did the value of the property “keep up with inflation” or did it exceed
inflation? Explain your reasoning.

1 section ä 640 acres ä 1 square mile

SOLUTION
The CPI values for 1942 and 2010 were 16.3 and 218.1, respectively. If the value
of the property had kept up with inflation, it would be worth
CPI in 2010
Value in 2010 = — (value in 1942)
CPI in 1942
218.1
= — (5000)
16.3
≈ $66,902.
So, the value of the property far exceeded inflation.

Checkpoint Help at

In 1942, a Bendix automatic washing machine cost about $150. Suppose the cost
of the washing machine kept up with inflation. What would it have cost in 2010?
1942 ad for Bendix washing machines
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164 Chapter 4 The Mathematics of Inflation & Depreciation

Graphing a Consumer Price Index

Graphing a Consumer Price Index

Graph the CPI from 1931 through 2010. Use the graph to describe the rates of
inflation during these years.

SOLUTION
One way to do this is to enter the CPI values into a spreadsheet. Then use the
spreadsheet
sp eads ee to graph the values.

Consumer Price Index (1931–2010)

225
22

200

175
In early 1980, inflation and interest
Consumer Price Index

rates rose to about 18%, which 150

was much higher than during
any other time of peace. Business 125

people and bankers panicked and

100
began talking about financial
collapse, bankruptcies, and a drop
75
in the American standard of living.
Jimmy Carter gave a speech not
50
only to announce a new program
to fight inflation, but also to calm
25
the panicking public.
0
1931

1936

1941

1946

1951

1956

1961

1966

1971

1976

1981

1986

1991

1996

2001

2006

2011
Year

Great 1950s 1970s Reagan to

Depression Eisenhower Post Vietnam the present

During the Great Depression, inflation was nonexistent. During World War II and
the 1940s, inflation started to increase, reaching an annual rate of 14.4% in 1947.
During the 1950s, America entered a period of stability, with an annual inflation
rate of about 1.9%. With the Vietnam War in the 1960s, inflation started to increase
again. By the 1970s, ending with the Carter years, inflation was rampant. The
annual rate of inflation during this decade was about 6.5%. From 1981 through
2010, the CPI followed a linear pattern, which implies that the rate of inflation
was gradually decreasing during that 30-year period.

Checkpoint Help at

From the graph in Example 3, does it appear that either political party
(Democratic or Republican) is more associated with higher inflation rates?
Explain your reasoning.

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4.2 Inflation & the Consumer Price Index 165

Consumer Price Index (1774–2010)

240
40
220
20 In 1775, the Continental Congress authorized the
printing of $2 million worth of Continental currency
200
00
to pay for the Revolutionary War. Without solid

Consumer Price Index

180
80 backing and easily counterfeited, the currency
160
60
soon became almost worthless. By the end of the
Revolutionary War, a Continental was worth less
140
40 than a thousandth of its original value. This is
120
20 the reason for the old saying ”not worth a
Continental.”
100
00
80 World War II
Revolutionary War
60
1941−1945
1775−1783
World War I
40 War of 1812 Civil War
1917−1918
1812−1815 1861−1865
20 Vietnam War
1965−1973
0
1782 1801 1820 1839 1858 1877 1896 1915 1934 1953 1972 1991 2010
Year

Analyzing a Graph

Use the graph of the CPI from 1774 through 2010 to discuss the statement from
[Link].

“The very nature of War results in the destruction of goods. But in normal times
money is spent to produce goods which makes the world a richer place. During
a war, however, things are produced but . . . they are not productive things but
destructive. The money is spent to destroy things. Often this is combined with an
increase in the money supply in order to pay for the destruction. This increase in
the money supply combined with a decrease in goods is classic inflation.”

SOLUTION
Up through the Vietnam War, it does appear that war corresponded to inflation.
Since that time, however, inflation appears to have been a constant part of U.S.
eeconomics, regardless of whether the country was at war.

Checkpoint Help at

D
Discuss the paragraph from [Link]. Do you agree with the argument?
Explain.
E

“Inflation occurs when the monetary base grows faster than the amount of
goods and services in the economy. Deficit spending, applied to boost
consumption, will result in inflation because the amount of goods and
services in the economy is unchanged while the monetary base is increased.
On the other hand, deficit spending applied to boost production will increase
the amount of goods and services, and is not necessarily inflationary.”

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166 Chapter 4 The Mathematics of Inflation & Depreciation

Inflation and the Value of the Dollar

There are two related ways to think about inflation.

• With inflation, the cost of a particular item or service increases.

• With inflation, the value of the dollar decreases.
The second concept is called devaluation of the dollar.

The Value of the Dollar

The value V of the dollar in year A is related to the value of the CPI in year A
by the following formula.
100
V in year A = —
CPI in year A
This depends on the base year, 1983, in which a dollar was worth $1.

Graphing the Value of the Dollar

Graph the value of the dollar from 1931 through 2010. Compare your graph with
the graph in Example 3 on page 164.

SOLUTION
You can use the same data you used in Example 3. However, in your
spreadsheet, create a new column that divides 100 by the CPI column.
spread

Value of the Dollar (1931–2010)

(with 1983 as a base year)
8

6
Amount (dollars)

0
1931

1936

1941

1946

1951

1956

1961

1966

1971

1976

1981

1986

1991

1996

2001

2006

2011

Year

The value of the dollar is decreasing, whereas the CPI values are increasing.

Checkpoint Help at

Why might the U.S. government encourage devaluation of the dollar during times
of deficit spending? Explain your reasoning.

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4.2 Inflation & the Consumer Price Index 167

Comparing Debt Between Two Years

Was the federal government more in debt in 2010 than in 1983? Explain
your reasoning.

U.S. Federal
Federa Debt (1940–2010)
14

Debt (trillions of dollars)

12

10

0
1940 1950 1960 1970 1980 1990 2000 2010
Year

SOLUTION
The simple answer is yes. The government owed about $1.4 trillion in 1983 and
about $14 trillion in 2010. This simple answer, however, does not account for the
fact that the dollar was worth less in 2010 than it was in 1983. You can account
for this difference as follows.
The value of the dollar in 2010 (compared to 1983 dollars) was
100
V in 2010 = —
CPI in 2010
100
=—
218.1
≈ $0.459.

So, in terms of 1983 dollars, the 2010 federal debt was about 45.9% of
$14 trillion, or about $6 trillion. In other words, it was about 4 times greater than
the federal debt in 1983.

Checkpoint Help at

Discuss the following loan plan. Is it valid? Explain.

1. Take out a mortgage for $250,000 in 2005.
Down payment: $30,000, Rate: 6%, Term: 30 years
2. Make a monthly payment of $1320.
3. Depend on an annual inflation rate of 4%.
4. Depend on housing prices increasing by 10% annually.
5. Sell the house in 10 years for $650,000.
This scenario happened many The balance of your mortgage will be $184,000.
times during the early 2000s.

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168 Chapter 4 The Mathematics of Inflation & Depreciation

4.2 Exercises
Minimum Wage The table shows the federal minimum hourly wage in the
years that the wage changed since 1978. In Exercises 1–4, use the table and
the CPI. (See Example 1.)

Effective Minimum
Year Hourly Wage
1978 $2.65

1979 $2.90

1980 $3.10
1981 $3.35

1990 $3.80
1991 $4.25

1996 $4.75
1997 $5.15
The first federal minimum wage law, the Fair Labor
2007 $5.85 Standards Act, was passed in 1938. This law set the
2008 $6.55 minimum wage at $0.25 per hour, limited a workweek
to a maximum of 44 hours, and banned child labor.
2009 $7.25

1. What is the percent increase in the CPI for the 2. What is the percent increase in the federal
following years? minimum hourly wage for the following years?
a. From 1978 to 1981 a. From 1978 to 1981
b. From 1978 to 1997 b. From 1978 to 1997
c. From 1990 to 2009 c. From 1990 to 2009
d. From 1978 to 2009 d. From 1978 to 2009

3. During which of the time periods in Exercises 1 and 2 did the buying power
of the federal minimum hourly wage outpace inflation? Explain your reasoning.

4. Do changes in the federal minimum hourly wage depend on the CPI?

Explain your reasoning.

5. Starting Wage The starting wage at a company in 1992 was $14.50 per hour. In 2010,
the starting wage was $21.25 per hour. Did the starting wage at the company keep up
with inflation? Explain your reasoning. (See Example 2.)

6. CEO Compensation In 1980, the compensation for a CEO at a company was $2.5 million.
By 2010, the compensation for the CEO was $15 million. Did the compensation for the CEO
keep up with inflation? Explain your reasoning. (See Example 2.)

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4.2 Inflation & the Consumer Price Index 169

H
HICP In Exercises 7–12, use the information below.
((See Examples 3 and 4.)
The European Central Bank uses the harmonized index of consumer prices United Kingdom Romania
(HICP) to measure the average change over time in prices paid by consumers
for normal goods and services across countries in the European Union. Unlike
the CPI, the HICP excludes owner-occupied housing costs and incorporates
Portugal Slovakia
rural consumers along with urban consumers in the calculations. The HICP is
an internationally comparable measure of inflation.

Estonia Spain
HICP by Country
Year Austria Germany Italy Netherlands Spain Sweden
1996 87.2 88.6 81.8 80.4 77.9 87.5 Czech Republic Germany

1997 88.2 90.0 83.3 81.9 79.4 89.1

1998 89.0 90.5 85.0 83.4 80.8 90.0
Luxembourg Ireland
1999 89.4 91.1 86.4 85.1 82.6 90.5
2000 91.2 92.4 88.6 87.1 85.5 91.7
2001 93.3 94.1 90.7 91.5 87.9 94.1 Bulgaria Austria

2002 94.8 95.4 93.1 95.1 91.0 95.9

2003 96.1 96.4 95.7 97.2 93.9 98.2
Cyprus Hungary
2004 97.9 98.1 97.8 98.5 96.7 99.2
2005 100.0 100.0 100.0 100.0 100.0 100.0
2006 101.7 101.8 102.2 101.7 103.6 101.5 Latvia Lithuania

2007 103.9 104.1 104.3 103.3 106.5 103.2

2008 107.3 107.0 108.0 105.5 110.9 106.7
The Netherlands Slovenia
2009 107.7 107.2 108.8 106.6 110.6 108.7

7. Which year is the base year for the HICP?

European Union Sweden
8. Graph the HICP for Italy from 1996 through 2009. The vertical axis should
have a range of 80 to 110. Use the graph to describe the rate of inflation
during these years.
Italy Poland

9. Graph the HICP for Sweden from 1996 through 2009. The vertical axis
should have a range of 80 to 110. Use the graph to describe the rate of
inflation during these years. Malta France

10. For the years shown, was the pricing for consumer goods and services more
stable in Italy or Sweden? Explain your reasoning.
Belgium Finland
11. Did all the countries shown in the table experience inflation from 1996 to
2009? Explain your reasoning.
Greece Denmark
12. Discuss the statement. Do you agree with the argument? Explain.

The HICP can be used to compare developments in inflation between different countries in
the European Union, and to calculate inflation for the eurozone as a whole. The national CPIs
of various other countries are not suitable for this because of differences in composition.

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170 Chapter 4 The Mathematics of Inflation & Depreciation

Average Pay The table shows the average hourly wage of production and
nonsupervisory employees in private industries across the United States
from 1966 to 2010. In Exercises 13–18, use the table. (See Examples 5 and 6.)

Average Hourly Wage of Production and Nonsupervisory Employees

Year Hourly Wage Year Hourly Wage Year Hourly Wage
1966 $2.73 1981 $7.44 1996 $12.04
1967 $2.85 1982 $7.87 1997 $12.51
1968 $3.02 1983 $8.20 1998 $13.01
1969 $3.22 1984 $8.49 1999 $13.49
1970 $3.40 1985 $8.74 2000 $14.02
1971 $3.63 1986 $8.93 2001 $14.54
1972 $3.90 1987 $9.14 2002 $14.97
1973 $4.14 1988 $9.44 2003 $15.37
1974 $4.43 1989 $9.80 2004 $15.69
1975 $4.73 1990 $10.20 2005 $16.13
1976 $5.06 1991 $10.52 2006 $16.76
1977 $5.44 1992 $10.77 2007 $17.43
1978 $5.88 1993 $11.05 2008 $18.08
1979 $6.34 1994 $11.34 2009 $18.62
1980 $6.85 1995 $11.65 2010 $19.04

13. Graph the average hourly wage of production and nonsupervisory employees from 1966
through 2010. Use the graph to describe the average hourly wage during these years.

14. Compare your graph from Exercise 13 to the graph of the CPI on page 164. Do
you think the average hourly wage of production and nonsupervisory employees
depends on the CPI? Explain your reasoning.

15. Did the average hourly wage of production and nonsupervisory

employees have more buying power in 1990 than in 1970?
Explain your reasoning.

16. Did the average hourly wage of production and nonsupervisory

employees have more buying power in 2010 than in 1990?
Explain your reasoning.

17. Would you be better off financially to earn $50,000 in 1990

or $75,000 in 2010? Explain your reasoning.

18. There is a discrepancy in buying power between the federal minimum hourly wage and
the average hourly wage of production and nonsupervisory employees. Since 1978, do
you think this discrepancy has increased, decreased, or remained unchanged? Explain
your reasoning.

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4.2 Inflation & the Consumer Price Index 171

Extending Concepts
Creating a Price Index In Exercises 19–22, use the information below and the table.

To create a price index, first choose a base year. The index in that year is 100. The
price index reflects the ratio of the price from a given year to the price in the base
year. Use the formula
Price in year A
Index in year A = 100 × ——
Price in base year

to find the index for a given year A.

19. Complete the table. Diesel

Unleaded Regular Gasoline
Fuel
20. Make a double line graph of
Year Average Average
the gasoline index and the
diesel index. Compare the rate Price Per Gasoline Index Price Per Diesel Index
of inflation for gasoline to the Gallon Gallon
rate of inflation for diesel fuel. 1995 $1.15 100.0 $1.11 100.0
1996 $1.23 107.0 $1.24
1997 $1.23 $1.20
1998 $1.06 $1.04
1999 $1.17 $1.12
2000 $1.51 $1.49
2001 $1.46 $1.40
2002 $1.36 $1.32
2003 $1.59 $1.51
2004 $1.88 $1.81
2005 $2.30 $2.40
2006 $2.59 $2.71
2007 $2.80 $2.89
2008 $3.27 $3.80
2009 $2.35 $2.47

21. For the years shown, use a spreadsheet to compare the rates of inflation for gasoline
and diesel fuel to the rate of inflation indicated by the CPI.

22. Diesel engines are 30% more fuel efficient than similar-sized gasoline engines.
From 2005 through 2009, would the annual fuel cost be more for a diesel engine
or a similar-sized gasoline engine? Explain your reasoning.

23. Inflation Rate Why might the inflation rate published by the Bureau of Labor
Statistics not match an individual’s inflation experience?

24. Economy Discuss the effects of inflation on an economy. Explain your reasoning.

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172 Chapter 4 The Mathematics of Inflation & Depreciation

4.1–4.2 Quiz
Average Inflation Rate In Exercises 1–6,
use the information below.
From 1983 to 2010, the average annual inflation
rate in the United States was about 3%.

1. Write a formula that can be used to model the

exponential growth of the CPI from 1983 to 2010.

2. Use the formula from Exercise 1 and a spreadsheet

to project the CPI from 1983 to 2020.

Year CPI Year CPI Year

ar CPI Year CPI
1983 100.0 1993 2003 2013
1984 1994 2004 2014
1985 1995 2005 2015
1986 1996 2006 2016
1987 1997 2007 2017
1988 1998 2008 2018
1989 1999 2009 2019
1990 2000 2010 2020
1991 2001 2011
1992 2002 2012

3. Use a spreadsheet to create a double bar graph Stock Market before and
to compare the projected CPI to the actual after Black Tuesday
CPI from 1983 to 2010. 400

350
4. You buy a new car for $25,000 in 2010. Using
300
the actual CPI for 2010, what would you
expect to pay for a new car with similar
Dow Jones

250
features in 2020? Black
200 Tuesday
5. On “Black Tuesday,” October 29, 1929, the 150
stock market lost over $14 billion. Estimate 100
this loss in terms of 2020 dollars. The CPI
for 1929 is 17.1. 50
Market Low
0
Oct Oct Oct Oct Oct Oct
6. You invest $10,000 in 2005. Your investment 1928 1929 1930 1931 1932 1933
earns an average of 2% annually for 15 years.
Month
In 2020, is the buying power of your investment
higher than in 2005? Explain your reasoning.

Copyright © Larson Texts, Inc. All rights reserved.

Chapter
p 4 Project
j Math & Accepting
p g a Job 173

Math & Accepting a Job

PROJECT: Comparing Costs of Living

1. Use the Cost of Living Calculator* at [Link].

Choose your home city, a job title that you are interested in, and a salary that
you would expect this job to pay in your home city. Then compare the cost
of living and salary in your home city to the cost of living and salary in each
of the following cities. Organize your results graphically, as though you were
presenting to a committee.
• New York, New York • Minot, North Dakota
• Boston, Massachusetts • Arlington, Texas
• Anchorage, Alaska • Topeka, Kansas
• San Diego, California • Columbus, Ohio
• Philadelphia, Pennsylvania • Tulsa, Oklahoma
• Grand Rapids, Michigan • Missoula, Montana
• Seattle, Washington • Fort Worth, Texas

Complete all four fields.

For your job title, choose
a title that best describes
the job you have or want.

After pressing “Calculate,”

the calculator will display
*Supplied by [Link] this type of result.

Cost of living in San Francisco, Salary Range for a Human Resources (HR)
California by Expense Category Specialist in San Francisco, California Equivalent Salary: $76,534

You are currently earning

$45,000 in Atlanta, Georgia
as a Human Resources (HR)
Specialist.

You need to earn $76,534 to

maintain the same standard of
living in San Francisco, California.

Atlanta

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174 Chapter 4 The Mathematics of Inflation & Depreciation

4.3 Exponential Decay

Make a table and graph showing exponential decay.
Calculate and use half-life.
Find an exponential decay rate.

Calculating Exponential Decay

A quantity has exponential decay when the quantity decreases by the same
percent from one time period to the next.

Formula for Exponential Decay

A quantity A that has exponential decay can be modeled by
Study Tip
As with exponential growth, A = P(1 − r)n.
be sure you see that the
rate of decay is written in A measures P is the initial r is the rate (%) n is the
decimal form. the quantity value of A, of decay, in elapsed
at any time. when n = 0. decimal form. time.

Making a Table
As young salmon pass through a turbine on a hydroelectric dam (on their
way to the ocean), about 15% are killed. Make a table showing how many
of 100,000 young salmon survive after passing
through 6 turbines.

SOLUTION
The formula for this exponential decay is
2 return to spawn
A = P(1 − r)n = 100,000(1 − 0.15)n. P = 100,000, r = 15% = 0.15

4000
eggs Turbi
Turbines, n Formula Survivors
laid
Salmon 0 A = 100,000(0.85) 0
A = 100,000 Remember that
10 reach Life
adulthood
1 A = 100,000(0.85) 1
A = 85,000 a nonzero
Cycle 800
number raised
fry 2 A = 100,000(0.85)2 A = 72,250
hatch
h to an exponent
3 A = 100,000(0.85) 3
A = 61,412 of 0 is defined
4 A = 100,000(0.85) 4
A = 52,200 to be 1.
5 A = 100,000(0.85) 5
A = 44,370
200 smolts
go to sea 6 A = 100,000(0.85) 6
A = 37,714

Checkpoint Help at

In the Columbia and Snake River system, some young salmon pass through
12 turbines. Of 100,000 young salmon, how many will survive?

Copyright © Larson Texts, Inc. All rights reserved.

4.3 Exponential Decay 175

Graphing Exponential Decay

As the height above sea level increases, atmospheric pressure decreases
exponentially at a rate of about 3.8% per 1000 feet. At sea level, atmospheric
pressure is denoted by 1 atmosphere (atm). Commercial jets typically fly at about
35,000 feet. Sketch a graph showing the decrease in atmospheric pressure as a jet
climbs from sea level to 35,000 feet. Use the graph to estimate the atmospheric
pressure at 35,000 feet.

SOLUTION
The formula for this exponential decay is
A = P(1 − r)n = 1(1 − 0.038)n. P = 1, r = 3.8% = 0.038
Enter this fformula into a spreadsheet and graph the results as shown.

Decrease in Atmospheric Pressure with

Increasing
g Height
g
1.0
Atmospheric pressure (atmospheres)

0.9

0.8

0.7

0.6

In the 17th century, scientists 0.5

discovered that air actually has
0.4
weight. Evangelista Torricelli,
one of the first to discover 0.3
atmospheric pressure, said, “We 0.2
live submerged at the bottom of an
ocean of the element air.” Earth’s 0.1

gravitational field pulls on air, and 0.0

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000
this pull is called atmospheric
pressure. Torricelli went on to
develop the mercury barometer to Height (feet)
measure atmospheric pressure.

From the graph, the atmospheric pressure at 35,000 feet appears to be about
0.25 atmosphere. You can check this using the formula.
A = P(1 − r)n = 1(1 − 0.038)35 = 1(0.962)35 ≈ 0.258 atm
So, at 35,000 feet above sea level, the atmospheric pressure is about a quarter of
what it is at sea level.

Checkpoint Help at

There are many mountains in the United States that have heights of 14,000
feet or greater. They are all in Alaska, California, Colorado, and Washington.
Mount McKinley in Alaska has a height of about 20,320 feet. How much
more does the atmospheric pressure decrease as you climb from 14,000 feet
to 20,320 feet?

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176 Chapter 4 The Mathematics of Inflation & Depreciation

Calculating and Using Half-Life

The half-life of a substance is the time it takes for the substance to lose half of its
pharmacological, physiological, or radiological characteristic.

Using Half-Life to Calculate Exponential Decay

Consider a substance that has a half-life of T. The remaining quantity A that
Study Tip exists after an elapsed time of t is
If a quantity begins at 16
units, then the amount after
one half-life is one-half of
A=P — () 1 t /T
2
.

16 units, or 8 units. The A measures P is the initial t is the T is the

amount after two half-lives the quantity value of A, elapsed half-life.
is 4 units, and so on. at any time. when n = 0. time.

Making a Table
The half-life of a drug is the amount of time it takes for 50% of the drug to be
removed from a person’s body. Suppose you are injected with 500 milligrams
of a drug that has a half-life of 3 hours. How much of the drug will be in your
bloodstream after 24 hours?

SOLUTION
The formula for the amount left in your bloodstream is
1 t /3
A = 500 — ()
2
. P = 500, T = 3

Enter this formula into a spreadsheet and graph the results as shown.

5500(0.5)^(3/3)
Amount of Drug Left
A B in Bloodstream
1 Ti
Time, t Amount, A 500
Amount (milligrams)

2 0 500.00
400
3 3 250.00
4 6 125.00 300
5 9 62.50
200
6 12 31.25
7 15 15.63 100
8 18 7.81
0
9 21 3.91 0 3 6 9 12 15 18 21 24
10 24 1.95 Time (hours)

About 2 milligrams will be in your bloodstream after 24 hours.

Checkpoint Help at

How much longer will it take for there to be less than 1 milligram of the drug in
your bloodstream?

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4.3 Exponential Decay 177

Carbon dating uses the radioisotope carbon-14 to determine the age of organic
materials up to about 50,000 years. Carbon-14 has a half-life of 5730 years.
Atmospheric carbon dioxide has a concentration of about 1 atom of carbon-14
per every 1012 atoms of carbon-12. Living organisms take in carbon dioxide
from the environment and have the same ratio of carbon-14 to carbon-12 as
the atmosphere. When an organism dies, it stops taking in carbon. Then the
carbon-14 in the organism starts to decay, which changes the ratio of carbon-14
to carbon-12. By measuring how much the ratio is lowered, it is possible to
estimate how much time has passed since the organism lived.

Carbon Dating a Skeleton

You discover the skeleton of a mastodon. By
having it tested, you find that the ratio of
carbon-14 to carbon-12 is about one-quarter
of that occurring in the atmosphere. How
long ago did the mastodon live?

SOLUTION
The half-life of carbon-14 is 5730 years. Because
the amount of carbon-14 in the sample is about
one-quarter of the amount in the skeleton when
the mastodon was alive, you can conclude that the
mastodon lived about 2 half-lives ago, or about
2(5730) = 11,460 years ago.

Fossils of the American mastodon

have been found from Alaska Checkpoint Help at
to Florida. Its main habitat was
cold, spruce woodlands, and it is In the article, soil samples were estimated to be 3000 years old. Estimate the
believed to have traveled in herds. ratio of carbon-14 to carbon-12 in the soil samples. Explain your reasoning.
It is thought to have disappeared
from North America about
10,000 years ago.

“Whale remains found at a 3,000-year-old site in northwestern Alaska called

Old Whaling, for instance, were once considered evidence of early hunting.
But a re-examination of the site in recent years has suggested that people there
were simply scavenging dead whales that had washed ashore. There are some
dramatic rock carvings in southeastern Korea that show bands of hunters
going after whales. But these are nearly impossible to pin down with an exact
date, says Odess. In contrast, the newfound ivory carving was pegged as being
3,000 years old by nearly a dozen radiocarbon dates on the soil in which it
was embedded. The previous eldest solid evidence for whaling is some
2,000 years old.”
“Whaling Scene Found in 3,000-Year-Old Picture,” Alexandra Witze

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178 Chapter 4 The Mathematics of Inflation & Depreciation

Finding an Exponential Decay Rate

Exponential Decay Rate

Study Tip If A0 and A1 are the quantities for any two times, then the decay rate between
Suppose the value of a new those times, r, is given by
automobile decreases from A
$32,000 to $26,000 after —1 = 1 − r.
A0
1 year. The ratio of the
second year’s value to the
first year’s value is
A 26,000
—1 =— Finding an Exponential Decay Rate
A0 32,000
= 0.8125 = 1 − r. Your basal metabolic rate (BMR) is the number of calories you expend per day
This implies that r = 0.1875. while in a state of rest. Informally, it is the amount of calories your body uses to
So, the rate of decay is stay alive. Studies show that your BMR decreases in adulthood.
18.75%.
A man’s BMR was 1800 calories when he was 20 years old. It decreased to
1710 calories when he was 30 years old. Assuming his BMR decays exponentially,
estimate the man’s age when his BMR will be about 1390 calories.

SOLUTION
Begin by dividing the BMR at age 30 by the BMR at age 20.
A1 1710
— = — = 0.95 = 1 − r
A0 1800
This implies that r = 0.05 and the rate of exponential decay is 5% every decade.
Use a spreadsheet to calculate a 5% per decade decrease from the age of 20 for
several decades.

A B Basal Metabolic Rate

1 De
Decades BMR (calories) 1800
BMR (calories)

2 0 1800.0 1500

3 1 1710.0 1200

4 2 1624.5 900
5 3 1543.3 600
6 4 1466.1 300
7 5 1392.8 0
0 1 2 3 4 5 6
8 6 1323.2
Decades (from age 20)

From the spreadsheet, you can see that his BMR will be about 1390 calories after
5 decades. So, he will be 70 years old.

As you get older and your BMR Checkpoint Help at

decreases, you may need to
exercise more or eat less to keep In the above example, suppose the man’s BMR decreased to 1764 calories when
from gaining weight. he was 30 years old. Estimate the man’s age when his BMR will be about 1660
calories assuming it decreases exponentially. Explain the results.

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4.3 Exponential Decay 179

There are many different forms of radioactive waste. Here are a few examples.

• Used nuclear fuel

• Discarded parts from nuclear
reactors
• Filters used to separate radioactive
materials from water
• Protective clothing of workers in
contaminated areas
• Medical supplies used in connection
with radioactive materials
• Remains of lab animals injected with
radioactive materials for research

Finding an Exponential Decay Rate

Ten grams of plutonium-239 are placed into
A B
a hazardous materials waste dump. Use the
spreadsheet to determine how long it will take Grams
the 10 grams of plutonium-239 to decay to 1 Years Remaining
about 1 gram. 2 0 10.0
3 10,000 7.5
SOLUTION 4 20,000 5.6
5 30,000 4.2
The rate of exponential decay is given by
6
A1 7.5
— = — = 0.75 = 1 − r .
A0 10
This implies that r = 0.25 and the rate of decay is 25% every 10,000 years.
spreadsheet to calculate the amount remaining.
Use a sprea

A B
Waste Dump
Grams
Amount remaining (grams)

10.0
1 Year
Years Remaining
2 0 10.0 8.0
3 10,000 7.5
6.0
4 20,000 5.6
5 30,000 4.2 4.0
6 40,000 3.2
2.0
7 50,000 2.4
8 60,000 1.8 0
0 10 20 30 40 50 60 70 80
In the United States, there are 9 70,000 1.3
three low-level radioactive Time (1000 years)
10 80,000 1.0
waste disposal facilities. They 11
are located in Barnwell, South
It will take about 80,000 years for the 10 grams of plutonium-239 to decay to
Carolina; Clive, Utah; and
about 1 gram.
Richland, Washington.
Checkpoint Help at

How much longer will it take the plutonium-239 to decay to about one-tenth of a
gram? Explain your reasoning.

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180 Chapter 4 The Mathematics of Inflation & Depreciation

4.3 Exercises
Glaciers In Exercises 1–6, use the information below. (See Examples 1 and 2.)
T size of a glacier is measured in the same way
The
0 0.5 1 Kilometer
as land, in acres or hectares. In 1900, the size of a 1850

glacier was about 320 hectares. Between 1900 and

2000, its size decreased by about 14% per decade.
Little
Matterhorn
1. Write a formula that represents the size of the 2403 1901

glacier at the beginning of each decade from 1900 Sperry Glacier, 1913

to 2000. Glacier National

Park, MT 1927

1960
2. Make a table showing the size of the glacier at the 1938
1945
1969
1979
beginning of each decade from 1900 to 2000. 1950
1960
1969 1966
1979
3. Sketch a graph showing the decrease in the area of 1993

the glacier from 1900 to 2000. 1960

1969
1966

4. Use the graph in Exercise 3 to estimate the area of 2765

the glacier in 2000. Edwards
Comeau
Mountain
Pass
5. A general rule is that a moving piece of ice and snow
is called a glacier when its size is at least 10 hectares. 2793
Assuming the trend continues, when will the glacier N tain
2800 oun
G unsight M
be too small to be considered a glacier?

6. Suppose that a recent study predicts that the glacier will be completely melted by 2040.
a. Does this prediction agree with your answer in Exercise 5? What does the research suggest about
the melting rate of the glacier after 2000?
b. When do you think an exponential model would be appropriate to model glacial melting?
When do you think a linear model would be appropriate? Explain.

Sperry Glacier in 1913 (top) and 2008 (bottom). The more recent image shows how the glacier has diminished and separated
into smaller pieces. Recent studies indicate that there may be no glaciers left in Glacier National Park by 2030.
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4.3 Exponential Decay 181

Snake Venom In Exercises 7–12, use the information below. (See Examples 3 and 4.)
The half-life of a snake’s venom is the amount of time it takes for 50% of
the venom to be removed from an animal’s body.

A snake bit a Tasmanian tiger, injecting

A snake bit a saber-toothed cat, injecting
40 milligrams of venom into its blood.
20 milligrams of venom into its blood. The
The venom had a half-life of 16 hours.
venom had a half-life of 40 hours.

7. Assume the saber-toothed cat was still alive after 80 hours. How much
of the venom remained in its bloodstream?

8. Assume the Tasmanian tiger was still alive after 2 days. How much of the
venom remained in its bloodstream?

9. How long did it take the amount of venom in

each animal’s bloodstream to drop to
10 milligrams?

10. The venom eventually killed the saber-toothed cat. An archaeologist

discovers the remains and calculates that the ratio of carbon-14 to
carbon-12 is about one-eighth of that occurring in the atmosphere.
How long ago did the saber-toothed cat live?

11. The venom eventually killed the Tasmanian tiger. An

archaeologist discovers the remains and calculates that the
Tasmanian tiger lived 500 years ago. Estimate the
ratio of carbon-14 to carbon-12 in the remains.

12. Suppose the half-life of

the venom injected into the
saber-toothed cat was only
20 hours. Would this increase
or decrease the answer to
Exercise 7? Explain.

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182 Chapter 4 The Mathematics
athemati of Inflation & Depreciation

13. Prostate Cancer A hospital experienced a large increase in the number

of prostate cancer cases in the late 1980s after the implementation of the
PSA blood test. Starting in 1992, when there were 200 new cases, the
number of new cases began to decay exponentially. In 1993, there were
176 new cases. Estimate the year when there were about 136 new cases.
(See Example 5.)

14. Lung Cancer The number of lung cancer deaths at a hospital

decreased from 50 in 2005 to 45 in 2006. Assuming the number of
yearly deaths decays exponentially, estimate the year when there were
about 30 deaths. (See Example 5.)

Uranium Decay In Exercises 15–17, use

238 234
the information below. (See Example 6.) 92 U 92 U
Uranium Uranium
Uranium-238 decays into thorium-234, which 234m
decays into protactinium-234m. This chain of 91 Pa
Protactinium
decaying continues as shown in the diagram,
which also includes radium-226 and radon-222. 234 230
90 Th 90 Th
Thorium Thorium

15. A sample of uranium ore originally contained

about 100 grams of uranium-238. Use the
spreadsheet to determine how long it will take
226 Uranium is a very common
the sample to decay to about 61 grams. 88 Ra
Radium element on Earth and is
Exercise 15 Exercise 16 present in many forms. The
mineral above, autunite,
A B A B
contains uranium.
Grams Grams 222
86 Rn
1 Years Remaining 1 Years Remaining Radon

2 0 100.0 2 0 10.0
3 400,000,000 94.0 3 400 8.4
4 800,000,000 88.4 4 800 7.1 218 214 210
5 1,200,000,000 83.1 5 1200 5.9 84 Po 84 Po 84 Po
Polonium Polonium Polonium
6 1,600,000,000 78.1 6 1600 5.0
214 210
7 7 83 Bi 83 Bi
Bismuth Bismuth

16. A scientist separates 10 grams of radium-226 from uranium ore 214 210 206
82 Pb 82 Pb 82 Pb
and places it in a storage container. Use the spreadsheet to Lead Lead Lead

determine how long it will take the 10 grams of radium-226

to decay to about 3 grams.

17. Consider all the radon gas produced by the decaying of radium
in the storage container after 1200 years.
a. Would all this radon gas still be in the storage container? Explain.
b. Suppose a jar contains 50 grams of radon-222. About 34.7 grams of radon-222 remain
after 2 days. Approximate the half-life of radon-222. Explain your reasoning.

18. Radon Testing Radon itself is inert, so it is typically unreactive. However, the
U.S. Environmental Protection Agency recommends that all homes be tested for radon.
Why do you think elevated levels of radon gas in your home are a health hazard?

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4.3 Exponential Decay 183

Extending Concepts
Social Media In Exercises 19–23, use the
information below.
A video posted on a social media website has
1024 views on day 1. The number of views
increases by 50% each day through day 10, and
then decreases by 10% each day through day 30.

19. Write a formula that represents the number of

daily views for the first 10 days.

20. How many views does the video have on day 10?

21. Write a formula that represents the number of

daily views for day 10 through day 30.

22. Sketch a graph showing the number of daily views for the 30 days.

23. Does the video have more views on day 1 or day 30?

24. Radioisotope Dating There are several other

Radioisotope Dating
100
methods that use radioactive decay to date objects.
When a radioactive substance decays into another
Daughter substance, the original substance is called the “parent”
Percent present

75
and the new substance is called the “daughter.”
50 a. When is the number of parents the same as the
number of daughters?
25
Parent b. After two half-lives, what is the ratio of the
number of parents to the number of daughters?
0
0 1 2 3 4 5
c. Does the graph of the parents exhibit
Number of half-lives exponential decay? Does the graph of the
daughters exhibit exponential growth? Explain.

d. Several methods of dating objects are shown in the diagram. Why do you think uranium-lead
dating can be used to date older objects that carbon-14 dating cannot date?

Radioisotope Dating Methods

1 1000 1,000,000 1,000,000,000

lead-210
carbon-14
uranium-thorium
potassium-argon
uranium-lead
rubidium-strontium
1 1000 1,000,000 1,000,000,000
Years in the past

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184 Chapter 4 The Mathematics of Inflation & Depreciation

4.4 Depreciation
Use straight-line depreciation.
Use double declining-balance depreciation.
Use sum of the years-digits depreciation.

Straight-Line Depreciation
Most assets lose their value over time. In other words, they depreciate and must
Study Tip be replaced once their useful life is reached. Several accounting methods are used
When you purchase to determine an asset’s depreciation expense over the period of its useful life. The
an asset for a business, you simplest method of depreciation is the straight-line method, in which the same
are not allowed to expense amount is expensed each year.
the cost of the asset in
the first year. You must
determine the useful life in Straight-Line Depreciation
years and the salvage value,
and then deduct only a Straight-line depreciation is calculated by dividing the difference of the
portion of the expense each purchase price and the salvage value by the years of useful life.
year during the useful life. (purchase price) − (salvage value)
Annual depreciation = ———
years of useful life

.and .com
You can access depreciation schedule calculators at [Link].

Making a Depreciation Schedule

You start a small business and rent an office. You furnish the office with $25,000
worth of office equipment. The useful life of the equipment is 5 years, and the
salvage value is $5000. Make a straight-line depreciation schedule showing the
depreciation you are allowed to expense each year.

SOLUTION
25,000 − 5000
Annual ddepreciation = —— = $4000
5
Straight-Line
Depreciation A B C D
$25,000 Value before Value after
1 Year Depreciation Depreciation Depreciation
$20,000
2 1 $25,000 $4,000 $21,000
$15,000 3 2 $21,000 $4,000 $17,000
Value

4 3 $17,000 $4,000 $13,000

$10,000
5 4 $13,000 $4,000 $9,000
$5,000 6 5 $9,000 $4,000 $5,000
Salvage value
0
0 1 2 3 4 5
Checkpoint Help at
Year
Make a straight-line depreciation schedule for the office equipment using a useful
life of 7 years and a salvage value of $4000.

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4.4 Depreciation 185

Making a Depreciation Schedule

A wheat farmer buys a new grain harvester for $300,000. Make a straight-line
Study Tip depreciation schedule using a useful life of 10 years and a salvage value
Accountants also use the of $50,000.
term recovery period for
useful life.

A combine harvester is a machine that harvests grain. It combines reaping, binding,

and threshing into one operation. The straw left behind is either chopped and spread
on the field or baled for feed and bedding for livestock.

SOLUTION
300,000 − 50,000
Annual depreciation = —— = $25,000
10

A B C D
Value before Value after
1 Year Depreciation Depreciation Depreciation
2 1 $300,000 $25,000 $275,000
3 2 $275,000 $25,000 $250,000
4 3 $250,000 $25,000 $225,000
5 4 $225,000 $25,000 $200,000
6 5 $200,000 $25,000 $175,000
7 6 $175,000 $25,000 $150,000
8 7 $150,000 $25,000 $125,000
9 8 $125,000 $25,000 $100,000
10 9 $100,000 $25,000 $75,000
11 10 $75,000 $25,000 $50,000
12
In straight-line depreciation, the same amount is expensed each year. Graphically,
this creates a linear pattern, hence the name “straight-line depreciation.”
Wheat farmers in the United States
harvest about 2 billion bushels of
wheat each year. Checkpoint Help at

Depreciation schedules do not necessarily represent the actual value that an asset
could be sold for after a certain number of years of use.
Suppose that after claiming 5 years of depreciation, the farmer sells the combine
for $180,000. How should he account for the income on his tax return? Explain
your reasoning.

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186 Chapter 4 The Mathematics of Inflation & Depreciation

Double Declining-Balance Depreciation

Whereas straight-line depreciation uses the same amount of depreciation each year,
double declining-balance depreciation uses the same rate of depreciation each year.
Study Tip
To be depreciable, your Double Declining-Balance Depreciation
property must have a
determinable useful life. To find the rate for double declining-balance depreciation, divide 2 by the
This means that it must be years of useful life.
something that wears out, 2
decays, gets used up, Annual rate of depreciation = ——
years of useful life
becomes obsolete, or loses
its value from natural causes. To find the depreciation, multiply this rate by the current value.
You cannot depreciate the
cost of land because land
does not wear out, become
Making a Depreciation Schedule
obsolete, or get used up.
Make a double declining-balance depreciation schedule for the office equipment
in Example 1.

SOLUTION
2
Annual rate of depreciation = — = 40%
5

A B C D
Value before Value after
1 Year
Y Depreciation Depreciation Depreciation
2 1 $25,000 $10,000 $15,000
This value must be
3 2 $15,000 $6,000 $9,000
adjusted so that
4 3 $9,000 $3,600 $5,400
the value after
5 4 $5,400 $400 $5,000 depreciation does
6 5 $5,000 $0 $5,000 not go below the
7 0.4(25,000) salvage value.

Double Declining-Balance
Depreciation
$25,000

$20,000
Value

$15,000

$10,000

$5,000

0
0 1 2 3 4 5
Year

Checkpoint Help at

Make a double declining-balance depreciation schedule for the office equipment

in Example 1 using a useful life of 7 years and a salvage value of $4000.

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4.4 Depreciation 187

Making a Depreciation Schedule

You own an Internet business. You purchase $200,000 worth of servers that
you will depreciate as business expenses. Make a double declining-balance
depreciation schedule using a useful life of 10 years and a salvage value
of $25,000.

SOLUTION
2
Annual rate of depreciation = — = 20%
10

A B C D
Value before Value after
1 Year Depreciation Depreciation Depreciation
2 1 $200,000 $40,000 $160,000
3 2 $160,000 $32,000 $128,000
4 3 $128,000 $25,600 $102,400
5 4 $102,400 $20,480 $81,920
6 5 $81,920 $16,384 $65,536
7 6 $65,536 $13,107 $52,429
8 7 $52,429 $10,486 $41,943
9 8 $41,943 $8,389 $33,554
10
1 9 $33,554 $6,711 $26,843
11
1 10 $26,843 $1,843 $25,000
12
1
This value must be adjusted so that
the value after depreciation does not
go below the salvage value.

Double Declining-Balance Depreciation

$200,000

$150,000
Value

$100,000

$50,000

0
0 1 2 3 4 5 6 7 8 9 10
Year

Checkpoint Help at

Using double declining-balance depreciation, how much more of the value did you
expense during the first 4 years compared to straight-line depreciation?

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188 Chapter 4 The Mathematics of Inflation & Depreciation

Sum of the Years-Digits Depreciation

A third commonly used depreciation method is the sum of the years-digits
Study Tip method. Like double declining-balance depreciation, this method expenses more
In Examples 3 and 4, you of the purchase price in the early years.
saw that double declining-
balance depreciation often
requires an adjustment in
Sum of the Years-Digits Depreciation
the last year or last few For sum of the years-digits depreciation, the depreciation rate for year k
years. This is not true of using a useful life of n years is given by dividing (n + 1 − k) by the sum of
straight-line depreciation the years of useful life digits.
or of sum of the years-digits
depreciation. Depreciation n+1−k
= ———
rate for year k sum of the years of useful life digits
To find the depreciation, multiply this rate by the difference between the
purchase price and the salvage value.

Making a Depreciation Schedule

You open a pizza shop and buy 2 delivery vans for a total
of $60,000. Make a sum of the years-digits depreciation
schedule using a useful life of 5 years and a total salvage
value of $15,000.

SOLUTION
The sum of the years digits is 1 + 2 + 3 + 4 + 5 = 15.

1st Year 2nd Year 3rd Year 4th Year 5th Year
Rate Rate Rate Rate Rate These are
always in
5 4 3 2 1
— — — — — reverse order.
15 15 15 15 15
The difference between the purchase price and the salvage value is
60,000
, − 15,000 = $45,000.

A B C D
Value before Value after
1 Year Depreciation Depreciation Depreciation
2 1 $60,000 $15,000 $45,000
3 2 $45,000 $12,000 $33,000
4 3 $33,000 $9,000 $24,000
5 4 $24,000 $6,000 $18,000
6 5 $18,000 $3,000 $15,000
7

Notice that the schedule arrives at the salvage value of $15,000 exactly.

Checkpoint Help at

Make a sum of the years-digits depreciation schedule for the delivery vans using a
useful life of 4 years. Use the same total salvage value of $15,000.

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4.4 Depreciation 189

Comparing Different Types of Depreciation

You own a fitness center and purchase all new equipment for $600,000. The
useful life of the equipment is 10 years, and the salvage value is $50,000.
Graphically compare the three methods of depreciation: (a) straight-line,
(b) double declining-balance, and (c) sum of the years-digits.

SOLUTION

Straight-Line Double Declining-Balance Sum of the Years-Digits

$600,000 $600,000 $600,000

$500,000 $500,000 $500,000

$400,000 $400,000 $400,000

Value

Value

Value
$300,000 $300,000 $300,000

$200,000 $200,000 $200,000

$100,000 $100,000 $100,000

0 0 0
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Year Year Year

a. Straight-line depreciation is the simplest method. With this method, you

expense the same amount of depreciation each year.
b. Double declining-balance depreciation is a method of depreciation in which
you expense the same rate (of the undepreciated value) each year. It is a
method of accelerated depreciation because the amount of depreciation
taken each year is greater during the earlier years of an asset’s life. It has the
disadvantage that the last year (or last few years) needs to be adjusted to arrive
at the salvage value. This is an example of exponential decay.
c. Sum of the years-digits depreciation is similar to double declining-balance
depreciation. It is an accelerated depreciation, but it has the advantage that it
will always arrive at the salvage value exactly (except possibly for round-off
error amounting to a few cents).

Checkpoint Help at

Suppose you own a business. Which method of depreciation do you prefer?

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190 Chapter 4 The Mathematics of Inflation & Depreciation

4.4 Exercises
Hair Salon The owner of a hair salon buys new equipment. In Exercises 1 and 2, make a
straight-line depreciation schedule for the equipment. (See Examples 1 and 2.)
1. 2.

Cost: $1100 Cost: $14,500

Salvage value: $400 Salvage value: $2500
Useful life: 7 years Useful life: 10 years

Barbershop The owner of a barbershop buys new equipment.

A graph of the straight-line depreciation schedule for the equipment
is shown. In Exercises 3–6, use the graph. (See Examples 1 and 2.)

Depreciation of Barbershop Equipment

$12,000

$10,000

$8,000
Value

$6,000

$4,000

$2,000
Salvage value: $2000
0
0 1 2 3 4 5 6 7 8
Year
In medieval times,
times barbers
were also surgeons. The red and
3. What is the value of the equipment after 5 years? white stripes on a barber pole
represent bloody bandages.
4. What is the value of the equipment after 7 years?

5. When a business sells equipment at a price greater than its value, the U.S. Internal
Revenue Service collects taxes on the difference. This is called depreciation recapture.
Find the taxable amount for each year in which depreciation recapture could occur for a
selling price of $6000.

6. When a business sells equipment at a price less than its value, the difference is tax
deductible. Find the tax deductible amount for each year in which a selling price of
$4000 would cause a loss.

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4.4 Depreciation 191

Construction Equipment The owner of a construction company buys new

equipment. In Exercises 7 and 8, make a double declining-balance depreciation
schedule for the equipment. (See Examples 3 and 4.)
7. 8.

Cost: $50,000 Cost: $60,000

Salvage value: $10,000 Salvage value: $12,000
Useful life: 5 years Useful life: 8 years

Construction Company The owner of a construction company buys new

equipment. A graph of the double declining-balance depreciation schedule for the
equipment is shown. In Exercises 9–14, use the graph. (See Examples 3 and 4.)

Depreciation of Construction Equipment

$300,000

$250,000

$200,000
Value

$150,000

$100,000

$50,000
Salvage value: $30,000
0
0 1 2 3 4 5 6 7 8 9 10 11 12
Year

9. What is the value of the equipment after 3 years?

10. What is the value of the equipment after 5 years?

11. How much depreciation did the company expense in year 8?

12. How much depreciation did the company expense in year 12?

13. Using double declining-balance depreciation, how much more of the value did the
company expense during the first 6 years when compared to straight-line depreciation?

14. Is there any year in which the value of the equipment using double declining-balance
depreciation is greater than the value of the equipment using straight-line depreciation?
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192 Chapter 4 The Mathematics of Inflation & Depreciation

Kitchen Equipment The owner of a restaurant buys new kitchen equipment. In Exercises 15 and 16,
make a sum of the years-digits depreciation schedule for the equipment. (See Example 5.)
15.
15 16.

Cost: $4500 Cost: $400

Salvage value: $0 Salvage value: $50
Useful life: 5 years Useful life: 7 years

Restaurant The owner of a restaurant buys new equipment. The salvage value of
the equipment is $25,000. The graph shows three methods that the restaurant can use
to depreciate the equipment. In Exercises 17–20, use the graph. (See Example 6.)

Depreciation of Restaurant Equipment

$500,000

$400,000
Value

$300,000

$200,000

$100,000

0
0 1 Strai
2 3 ght-l
4 5 Doub ine
6 7 le de
8 9 Sum clinin
Year 10 of th g-ba
e yea lance
rs-dig
Depr its
ecia
Sche tion
dule

17. Which method depreciates the value the most during the first 3 years?

18. Which method depreciates the value the most during years 4 through 10?

19. Using sum of the years-digits depreciation, how much more of the value did the restaurant
expense during the first 4 years when compared to straight-line depreciation?

20. Suppose the restaurant sells the equipment for $250,000 after 4 years. Describe the restaurant’s
gain or loss using each method.

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4.4 Depreciation 193

Extending Concepts
MACRS In Exercises 21–26, use the information below.

You can also use the modified accelerated cost recovery system (MACRS)
to depreciate assets. One method available under MACRS is double
declining-balance depreciation with a switch to straight-line depreciation.
Under this method, you compare the annual rates of depreciation
for double declining-balance depreciation and straight-line depreciation
each year. When the rate for straight-line depreciation is greater than or
equal to the rate for double declining-balance depreciation, you switch
to straight-line depreciation. The annual rate of depreciation for
straight-line depreciation is given by
1
Annual rate of depreciation = ——.
remaining useful life

In the exercises, you should use the half-year convention, which begins
depreciation halfway through the year that an asset is put into service.
An asset with a useful life of n years will have a depreciation schedule
with n + 1 years because you start and end the useful life halfway through
the year. For straight-line depreciation, the remaining useful life in year 2
1
is n − —. After year 2, the remaining useful life decreases by 1 each
2
year. For both methods, the depreciation deductions in the first year and last
year are reduced by half. (Note: Salvage value is not used under MACRS.)

21. Using the method described above, in which year do you switch to
straight-line depreciation for an asset with the given useful life?
a. 5 years b. 10 years

22. Using the method described above, in which year do you

switch to straight-line depreciation for an asset with the given
useful life?
a. 3 years b. 7 years

23. You purchase a $4000 copy machine. The useful life of the
machine is 5 years. Make a depreciation schedule using the
method described above.

24. You purchase a $10,000 knitting machine. The useful life of

the machine is 5 years. Make a depreciation schedule using
the method described above.

25. You purchase a $24,000 digital printing press. The useful

life of the machine is 7 years. Make a depreciation schedule
using the method described above.

26. You purchase a $3000 ticket booth. The useful life of the
booth is 7 years. Make a depreciation schedule using the
method described above.

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194 Chapter 4 The Mathematics of Inflation & Depreciation

4.3 – 4.4 Quiz

W
Wastewater Filtration In Exercises 1– 4,
use the information below.
u
A factory discharges wastewater into a river. The initial
concentration of pollutants in the wastewater is 2000
parts per billion (ppb). Before entering the river, the
water must pass through multiple filters to reduce the
concentration to an acceptable level of 10 ppb.
1. A single filter removes 70% of pollutants in
the wastewater.
a. What is the concentration of pollutants after
passing through three filters?
b. How many filters must the water pass through
to meet the acceptable level?

2. A single filter removes half the pollutants in the wastewater.

a. What is the concentration of pollutants after passing through four filters?
b. How many filters must the water pass through to meet the acceptable level?
c. Is it possible to remove all the pollutants? Explain your reasoning.

3. After the water passes through 1 filter, the concentration of pollutants

is 900 ppb. Each filter removes the same percent of pollutants. How
many filters must the water pass through to meet the acceptable level?

4. After passing through 2 filters, the concentration of pollutants is

320 ppb. Each filter removes the same percent of pollutants. What
is the concentration of pollutants after passing through four filters?

55. Water Treatment Equipment A factory owner buys water

treatment equipment for $10,000. Make a straight-line
depreciation schedule for the equipment using a useful life
of 5 years and a salvage value of $1000.

66. Water Treatment Equipment A factory owner buys water treatment

equipment for $25,000. The useful life of the equipment is 10 years, and
the salvage value is $0. The factory owner uses double declining-balance
depreciation. What is the value of the equipment after 5 years?
Depreciation Schedule
Year Value 77. Financial Records A factory owner buys
0 $20,000 $20,000 worth of water treatment equipment.
1 $15,000 The owner depreciates the equipment over
2 $11,000 5 years, and the salvage value is $5000. The
depreciation schedule for the equipment is
3 $8000
shown. What depreciation method did the
4 $6000
owner use? Explain your reasoning.
5 $5000

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Chapter 4 Summary 195

Chapter 4 Summary

Section Objectives How does it apply to you?

Make a table showing exponential You can analyze a quantity that increases by the same percent
Section 1

growth. each time period. (See Examples 1 and 2.)

Draw a graph showing exponential You can visualize exponential growth. (See Examples 3
growth. and 4.)

You can determine by what percent a quantity is increasing.

Find an exponential growth rate.
(See Examples 5 and 6.)

You can describe the change in prices for consumer goods

Use a consumer price index.
Section 2

over time. (See Examples 1 and 2.)

Use a graph to interpret a You can visualize the trends in a consumer price index over
consumer price index. time. (See Examples 3 and 4.)

Compare inflation to the value of You can understand the relationship between inflation and the
the dollar. value of the dollar. (See Examples 5 and 6.)

You can determine how much of a quantity that decays

Make a table and graph showing
exponentially remains after a period of time.
exponential decay.
Section 3

(See Examples 1 and 2.)

You can determine the concentration of a drug in your body

Calculate and use half-life. and use carbon dating to determine the age of a fossil.
(See Examples 3 and 4.)

You can determine by what percent a quantity is decreasing.

Find an exponential decay rate.
(See Examples 5 and 6.)

Straight-line depreciation reduces the value of an item by the

Use straight-line depreciation.
same amount each year. (See Examples 1 and 2.)
Section 4

Double declining-balance depreciation reduces the value of

Use double declining-balance
an item by the same percent each year. (See Examples 3
depreciation.
and 4.)

Use sum of the years-digits Sum of the years-digits depreciation expenses more of the
depreciation. purchase price in the early years. (See Examples 5 and 6.)

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196 Chapter 4 The Mathematics of Inflation & Depreciation

Chapter 4 Review Exercises

Section 4.1
Sectio
Apportionment In Exercises 1–6, use the information below.
A
Appo
Apportionment is the proportional distribution of the 435 members of the U.S. House of
Representatives based on the population of each state. In 1960, each member of the House
represented about 415,000 people. On average, this number has increased by 11.5% each decade.

1. Write a formula that can be used to model 2. Make a table showing the estimated
the exponential growth of the population per population per representative every
representative every decade since 1960. decade from 1960 through 2010.
(Note: n represents decades.)

3. Use the formula from Exercise 1 to project 4. Graph the estimated and projected
the population per representative every decade populations from Exercises 2 and 3.
from 2020 through 2100.

5. Suppose the actual populations per representative 6. Use the map to estimate the population
for 2050 and 2060 are 1,100,000 and 1,230,000, of California.
respectively. What is the rate of growth per decade?
How do these numbers compare to your model?

Apportionment of the U.S. House of Representatives

AK Based on the 2010 Census
1
Change from 2000 to 2010
State gaining 4 seats in the House
State gaining 2 seats in the House
State gaining 1 seat in the House
No change
State losing 1 seat in the House
State losing 2 seats in the House
WA
10 NH
VT 2 ME
MT ND 1 2
1 1
OR MN
5 ID 8 MA 9
SD WI NY
2 27
WY 1 8 MI
14 RI 2
1
IA PA CT 5
NV NE 4 18 NJ 12
3 OH
4 UT IL IN 16 DE 1
4 CO 18 9 WV MD 8
CA VA
53 7 KS MO KY 3 11
4 8 6
NC
TN 13
AZ OK 9
9 NM 5 AR SC
3 4 7
AL GA
MS 14
4 7
TX LA
36 6

FL
HI 27
2

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Chapter 4 Review Exercises 197

Section 4.2
N
Natural Gas The table shows the natural gas price index of natural gas delivered
tto residential consumers in the United States. Consumers are charged per thousand
cubic
c feet. In Exercises 7–14, use the table. (Note: The base year is 1983.)

National Gas Price Index

Year CPI Year CPI Year CPI
1966 — 1981 70.8 1996 104.6
1967 17.2 1982 85.3 1997 114.5
1968 17.2 1983 100.0 1998 112.5
1969 17.3 1984 101.0 1999 110.4
1970 18.0 1985 101.0 2000 128.1
1971 19.0 1986 96.2 2001 158.9
1972 20.0 1987 91.4 2002 130.2
1973 21.3 1988 90.3 2003 158.9
1974 23.6 1989 93.1 2004 177.4
1975 28.2 1990 95.7 2005 209.6
1976 32.7 1991 96.0 2006 226.6
1977 38.8 1992 97.2 2007 215.8
1978 42.2 1993 101.7 2008 229.2
1979 49.2 1994 105.8 2009 200.3
1980 60.7 1995 100.0 2010 —

7. Was inflation of natural gas the highest in the 1970s, 1980s, or 1990s?
Explain your reasoning.

8. During which years did the price of natural gas decrease?

9. Graph the natural gas price index from 1967 through 2009. Use the graph to
describe the rate of inflation for natural gas.

10. Compare the rate of inflation for natural gas to the rate of inflation represented
by the consumer price index.

11. In 2009, the average price of natural gas per thousand cubic feet
was $12.14. What was the price in 1970?

12. In 2006, the average price of natural gas per thousand cubic feet
was $13.73. What was the price in 1983?

13. Would you rather pay a natural gas bill of $115.50 in 2004 or $92.35
in 1990? Explain your reasoning.

14. Do you think using a price index to compare prices between years is better
than using a dollar amount? Explain your reasoning.

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198 Chapter 4 The Mathematics of Inflation & Depreciation

Section 4.3
Medicine In Exercises 15 –18, use the information below.
M
S
Subjects in a study receive daily doses of a medicine for 10 weeks. In the first
week, they receive 100 milligrams each day. Each week thereafter, the dosage
decreases 10% from the previous week.

15. Write a formula that represents the daily dosage

during each week.

16. Make a table showing the daily dosage during the

10 weeks.

17. Sketch a graph showing the decrease in the daily

dosage during the 10 weeks.

18. The half-life of the medicine is 24 hours. How much

of the medicine received in a dose during week 10
remains in the patient’s bloodstream after 24 hours?

Technetium In Exercises 19–22, use the information below.

Most technetium is man-made in nuclear reactors. There are many isotopes of
technetium, two of which are technetium-99 and technetium-99m. The half-life
of technetium-99 is 210,000 years.

19. How much of a 120-gram sample of technetium-99 will remain after 630,000 years?

20. A vial contains 10 grams of technetium-99m. Use the spreadsheet to determine how
long it will take the 10 grams of technetium-99m to decay to about 2.1 grams.

A B
Grams
1 Years Remaining
2 0 10.0
3 1.5 8.4
4 3 7.1
5 4.5 5.9
6 6 5.0
7 7.5 4.2
8

21. What is the half-life of technetium-99m? Explain your reasoning.

22. A solution containing technetium-99m is often injected into a

patient to help diagnose problems in the body. Explain why a This technetium scan helped veterinarians
hospital or veterinary clinic should not order excessive amounts diagnose this cat with hyperthyroidism.
of technetium-99m with the intent of placing it in storage.

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Chapter 4 Review Exercises 199

Section 4.4
O
Outdoor Water Park You own an outdoor water park and you purchase new
eequipment. In Exercises 23 and 24, make a straight-line depreciation schedule
for the equipment.
fo
23. 24.

Cost: $2500 Cost: $4000

Salvage value: $500 Salvage value: $1200
Useful life: 5 years Useful life: 7 years

OOutdoor Water Park You own an outdoor water park and you purchase new
eequipment. A graph of the double declining-balance depreciation schedule for
the equipment is shown. In Exercises 25–28, use the graph.
th

Depreciation for Water Park Equipment

$60,000

Initial Value
$50,000
Depreciation
$40,000
Value

$30,000

$20,000

$10,000

0
0 1 2 3 4 5 6 7
Year

25. How much depreciation did you expense in year 1?

26. How much depreciation did you expense in year 7?

27. Using double declining-balance depreciation, how much more of the value did you expense
during the first 4 years when compared to straight-line depreciation?

28. Suppose you had used sum of the years-digits depreciation instead of double declining-balance
depreciation. How much more did you expense during the first 4 years when compared to
straight-line depreciation?

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5 The Mathematics
of Taxation

5.1 Flat Tax & Political Philosophy

Calculate a flat income tax.
Identify types of taxes.
Analyze an indirect tax.

5.2 Graduated Income Tax

Calculate a graduated income tax.
Analyze a graduated income tax system.
Compare a graduated income tax with a flat income tax.

5.3 Property Tax

Calculate a property tax.
Analyze assessments and tax credits.
Analyze exemptions for property tax.

5.4 Social Security & Payroll Taxes

Calculate Social Security & Medicare taxes.
Evaluate the benefits of Social Security.
Analyze the viability of Social Security.

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Tax Rates The tax rate (slope) is the
same for all income levels.
As income increases, the
tax rate (slope) increases. Progressive

Tax paid
Flat
(or Proportional)

Regressive

As income increases, the

tax rate (slope) decreases.

Income

Example 3 on page 204 provides examples of the taxes shown above.

Is a sales tax of 5% regressive, flat, or progressive?

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202 Chapter 5 The Mathematics of Taxation

5.1 Flat Tax & Political Philosophy

Calculate a flat income tax.
Identify types of taxes.
Analyze an indirect tax.

Calculating a Flat Income Tax

A flat tax (short for flat rate tax) is a tax system with a constant tax rate. In the
Study Tip United States, the federal income tax is not a flat tax. People with higher incomes
Income tax is paid on not only pay more income tax, they pay a higher tax rate (see Section 5.2). As of
taxable income, which is the writing of this text, seven states have a flat income tax.
gross income minus
deductions, where • Colorado 4.63% • Illinois 5.00%
“deductions” depend on • Indiana 3.40% • Massachusetts 5.30%
the taxing authority.
• Michigan 4.35% • Pennsylvania 3.07%
• Utah 5.00%
Additionally, there are seven states with no income tax: Alaska, Florida, Nevada,
South Dakota, Texas, Washington, and Wyoming.

Calculating a Flat Income Tax

Two people who live in Utah have the following taxable incomes.

a. $20,000 b. $2,000,000
How much state income tax does each person owe?
Note that a flat tax means
SOLUTION that everyone pays the same
rate, not the same amount.
Each person owes 5% of his or her taxable income.
a.
20,000 .00
1 ,000 .00

b.
2 ,000,000 .00
100,000 .00

Checkpoint Help at

Is the following logic valid? Explain your reasoning.

Taxable Income: Taxable Income: Flat income taxes are not fair because the rich should have to pay more
$20,000 $2,000,000 income taxes than the poor.

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5.1 Flat Tax & Political Philosophy 203

Determining Taxable Income

The Internal Revenue Service (IRS) estimates that about $290 billion in income
goes unreported each year in the United States. Which of the following do you
think is part of your taxable income for the IRS?
a. $20 per week you receive for babysitting your niece
b. $500,000 you win in a state lottery
c. $40 per night you receive in tips as a food server
d. $1000 monthly payment by your employer for your medical insurance
e. $15 per month interest you receive from a savings account
f. $50,000 interest you receive from municipal bonds
g. $250,000 profit you receive from selling your home
h. $30,000 inheritance you receive from your spouse
i. $2000 per month you receive for child support from your former spouse

SOLUTION
IRS regulations are complicated and open to interpretation. In addition, there are
annual changes to IRS regulations as to what constitutes taxable income. If an IRS
audit claims that you owe more tax, you can hire an accountant and an attorney to
challenge the audit. With that said, here is one tax accountant’s opinion regarding
the above list.
a. Babysitting: This is a wage and is taxable.
b. Lottery winnings: Lottery and gambling winnings are taxable.
c. Tips: Tips are taxable.
d. Employer-provided medical insurance: At this time, this is not taxable.
e. Interest from savings accounts: This type of interest is taxable.
f. Interest from municipal bonds: This interest is generally not taxable.
g. Profit from the sale of a home: This is generally not taxable.
h. Inheritance: Inheritance from a spouse is generally not taxable.
i. Child support: This is not taxable.

Checkpoint Help at

Income taxes were imposed at various times in history, generally because

of national emergencies. With the adoption of the 16th Amendment of the
U.S. Constitution in 1913, the government established the present form of
federal income tax. Some people, such as presidential candidate Ron Paul,
have claimed that the amendment is unconstitutional. What do you think?
Ron Paul is a congressman for
the 14th Congressional District
of Texas. His libertarian positions “Ron Paul supports the elimination of the income tax and the Internal Revenue
on political issues have often Service (IRS). He asserts that Congress had no power to impose a direct
clashed with both Republican income tax and has called for the repeal of the 16th Amendment to the
and Democratic party leaders. Constitution, which was ratified on February 3, 1913.”
Paul ran for president of the “End the Income Tax, Abolish the IRS,” [Link], 2009
United States in 1988 and 2008.

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204 Chapter 5 The Mathematics of Taxation

Identifying Types of Taxes

A regressive tax is a tax that takes a smaller proportion of an income as the
income rises. In other words, it is a tax that affects people with low incomes more
than people with high incomes. A progressive tax (or graduated tax) is a tax that
takes a larger proportion of an income as the income rises (see Section 5.2). So,
based on tax rates and income, taxes can be classified in three ways.

Tax Rates The tax rate (slope) is the

same for all income levels.
As income increases, the
tax rate (slope) increases. Progressive
Tax paid
Flat
(or Proportional)

Regressive

As income increases, the

tax rate (slope) decreases.

Income

Identifying Types of Taxes

Determine whether each tax is regressive, flat, or progressive.
a. Medicare tax of 1.45% of gross personal income
b. Sales tax of 5% c. Federal income tax

SOLUTION
a. The upper wage limit for the Medicare tax was eliminated in 1994, meaning
that the tax is now applied to all wages. The rate is the same for all wage
earners, so it is an example of a flat tax.
b. Sales tax is commonly used as an example of a regressive tax. Suppose, for
example, that a family earning $50,000 a year buys a new car for $20,000
and pays $1000 in sales tax. This is 2% of the family’s income. If a family
earning $100,000 a year buys the same car and pays $1000 in sales tax, the
family is paying only 1% of its income.
c. Federal income tax is a classic example of a progressive tax. People with
low taxable incomes pay 10% federal income tax. People with higher taxable
incomes pay up to 35% federal income tax.

Checkpoint Help at

Determine whether each tax is regressive, flat, or progressive.

d. An annual automobile registration fee of $35 per car
e. Federal estate tax
f. Capital gains tax of 15% on the profit from the sale of a stock investment

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5.1 Flat Tax & Political Philosophy 205

It would be difficult for a country to openly establish a tax policy that attempts
to tax poor people more punitively than rich people. Instead, taxes that are
considered regressive, such as sales tax, are often levied as a flat tax. It is only in
analyzing the consequences of the tax that the tax is determined to be regressive.

Identifying Types of Taxes

The graph shows the average state and local taxes paid by different income
groups. Use the graph to discuss whether the three types of taxes are regressive,
flat, or progressive.

Average State and Local Taxes Paid by Income Groups

14
Sales & excise taxes
Percent of income 12
Property taxes
10 Income taxes

0
Lowest Second Middle Fourth Next Next Top
20% 20% 20% 20% 15% 4% 1%
Income group

SOLUTION
a. Sales and excise taxes: Although these taxes are not explicitly written to be
regressive, they end up being classified that way in practice. The graph shows
that as your income increases, the percent of your income that goes to sales
and excise taxes decreases.

b. Property taxes: Although property tax is considered by some people to

be regressive, for the vast number of Americans, it is a flat tax. The reason
for this is that as a person’s income increases and he or she buys a larger
home, the assessment of the person’s property generally increases.

c. Income taxes: Although some states have a flat income tax system, the
majority have a progressive income tax system (see Section 5.2). The result is
that, on average, people with greater incomes tend to pay a greater percent of
their income toward state income tax.

Checkpoint Help at
In 2010, there were about
2.2 million farms in the Discuss the following claim. Do you agree or disagree? Explain your reasoning.
United States. The average
farm size was about 418 acres. Estate taxes are regressive taxes. They hurt farmers who want to pass
Farms are often inherited from their farms on to their children.
family members.

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206 Chapter 5 The Mathematics of Taxation

Analyzing Indirect Taxes

An indirect tax is a tax that increases the price of a product. Consumers actually
pay the tax by paying more for the product.
The diagram illustrates an example. The direct tax is on an automobile
manufacturer. However, the person who ultimately pays the tax is the consumer.

T
The retailer raises
tthe retail price an
n
additional $200
per auto.
The manufacturer
anufacturer
raises the wholesale
price an additional
$200 per auto. A consumer
pays $1400
The government more per auto.
taxes the manufacturer
$1000 per auto.

The key feature of an indirect tax is that the tax can be shifted to someone else
who is farther along in the manufacturing chain.

Analyzing an Indirect Tax

A store in the United States imports fireworks from China and pays $250, plus an
import duty of 2.4%. Is the tax regressive, flat, or progressive? Draw a diagram
showing a chain of events that could occur.

SOLUTION
Here is one possible diagram.

The store raisess

T
th retail price an
the
additional $4.

The government
ernment consumer pays
A consum
taxes the store $6. $10 more for
the fireworks.

The point is that, regardless of who the tax is levied at directly, usually the
consumer ends up indirectly paying the tax. Excise taxes and sales taxes are
generally considered to be regressive.

Checkpoint Help at

Suppose the federal government levies a $1 per gallon excise tax on diesel fuel.
Draw a diagram showing a chain of events that could occur.

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5.1 Flat Tax & Political Philosophy 207

“Economists have often advocated taxing consumption rather than income, on

the grounds that consumption taxes do less to discourage saving, investment
and economic growth. . . . The main issue for the soda tax, however, is whether
certain forms of consumption should be singled out for particularly high levels
of taxation. . . .
Taxes on gasoline can be justified along these lines. Whenever you go out for
a drive, you are to some degree committing an antisocial act. You make the
roads more congested, increasing the commuting time of your neighbors. You
increase the likelihood that other drivers will end up in accidents. And the
gasoline you burn adds to pollution. . . .
Taxing soda may encourage better nutrition and benefit our future selves. But
so could taxing candy, ice cream and fried foods. Subsidizing broccoli, gym
memberships and dental floss comes next. Taxing mindless television shows
and subsidizing serious literature cannot be far behind.”
“Can a Soda Tax Save Us From Ourselves?,” N. Gregory Mankiw
Nicholas Gregory Mankiw is an
American macroeconomist.
From 2003 to 2005, Mankiw was Analyzing Possible Effects of Taxes
the chairman of President
George W. Bush’s Council of It is often assumed that the basic goal behind taxation policies is to raise money
Economic Advisers. He is a that will be spent to help all members of society. Discuss ways in which the fol-
professor of economics at lowing taxes might help the people who are paying the taxes.
Harvard University.
a. A property tax that is used to fund local public schools
b. A gasoline excise tax that is used to build and improve roads
c. A tax on fast food that is used to lessen medical insurance premiums
d. A tax on casino gambling that is used to buy prescription medicines for seniors

SOLUTION
a. Property tax: Home owners pay property taxes directly, and renters pay
property taxes indirectly. The general argument is that everyone benefits from
having well-educated members of society, regardless of whether the people
who are paying the property tax have children in school.
b. Gasoline excise tax: This is an often-cited example of a tax that directly
benefits the people who are paying the tax. The argument is that people use gas
to travel on roads. They benefit from the tax because they will continue to have
new and improved roads to travel on.
c. Tax on fast food: There is a growing interest in this type of tax. The general
argument is that fast food contributes to obesity, which contributes to increased
medical expenses and higher insurance premiums. The idea behind this tax
is that people who eat fast food should contribute more toward their own
medical expenses.
d. Tax on casino gambling: Casino patrons are often 65 or older. So, it could be
argued that the tax benefits many of the people who pay the tax.

Checkpoint Help at

Suppose you are a member of a state legislature that is voting on starting a special
tax on soda. Would you vote for or against the bill? Explain your reasoning.

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208 Chapter 5 The Mathematics of Taxation

5.1 Exercises
State Income Tax In Exercises 1–4, determine how much state income tax the person owes. (See Example 1.)
1. A person who lives in Indiana has a taxable income of $49,000.
6 .00
7. State Taxable Income Subtract line 6 from line 5 ____________________________________ 7 .00
8. State income tax: multiply line 7 by 3.4% (.034)
(if answer is less than zero, leave blank) _____________________________________________ 8 .00

2. A person who lives in Indiana has a taxable income of $2,500,000.

6 .00
7. State Taxable Income Subtract line 6 from line 5 ____________________________________ 7 .00
8. State income tax: multiply line 7 by 3.4% (.034)
(if answer is less than zero, leave blank) _____________________________________________ 8 .00

3. A person who lives in Michigan has a taxable income of $25,000.

00

16. Taxable income. Subtract line 15 from line 14. If line 15 is greater than line 14, enter “0” .... 16. 00
17. Tax. Multiply line 16 by 4.35% (0.0435) ................................................................................. 17. 00

4. A person who lives in Michigan has a taxable income of $60,000.

00

16. Taxable income. Subtract line 15 from line 14. If line 15 is greater than line 14, enter “0” .... 16. 00
17. Tax. Multiply line 16 by 4.35% (0.0435) ................................................................................. 17. 00

Taxable Income In Exercises 5–8, use the Internet to determine whether the income is taxable by the
federal government. (See Example 2.)
5. $100 gift card you receive from your parents 6. $2000 per year scholarship you receive for college tuition

7. $250 bonus you receive from your employer 8. $5000 prize you receive from a game show

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5.1 Flat Tax & Political Philosophy 209

Taxes In Exercises 9–12, determine whether the tax is

regressive, flat, or progressive. Explain your reasoning.
(See Example 3.)
9. Social Security tax of 6.2% on earnings up to
$106,800

10. 17% income tax on all income over $12,500

11. 19% income tax on all income

12. 7% sales tax

Connecticut State and Local Taxes In Exercises 13–16, use the display. (See Example 4.)

Connecticut State & Local Taxes Paid by Income Groups

(Nonelderly taxpayers)

8.0%
Percent of income

6.0%

4.0%

2.0%

0.0%
Lowest Second Middle Fourth Next Next Top
20% 20% 20% 20% 15% 4% 1%
Sales & excise taxes 6.3% 4.5% 3.5% 3.0% 2.1% 1.3% 0.7%
Property taxes 5.5% 3.9% 4.2% 4.5% 3.9% 3.3% 0.9%
Income taxes 0.1% 1.4% 2.9% 3.6% 4.2% 4.0% 5.0%

13. The income for a family in the middle 20% is

$58,000. How much, in dollars, does this family
pay for each type of tax?

14. The income for a family in the top 1% is $3,160,000.

How much, in dollars, does this family pay for each
type of tax?

15. Determine whether the three types of taxes are

regressive, flat, or progressive in Connecticut.
Explain your reasoning.

16. Are taxes, as a whole, regressive, flat, or progressive Connecticut has the second-highest property taxes per person
in Connecticut? Explain your reasoning. in the United States, behind only New Jersey. It is also the most
recent state to adopt an income tax (1991).

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210 Chapter 5 The Mathematics of Taxation

Hawaii’s General Excise Tax In Exercises 17–21, use the information below. (See Example 5.)
The state of Hawaii does not have a sales tax. Instead, it has a general excise tax. Unlike a sales tax,
the general excise tax applies to businesses, not customers. Hawaii taxes retailers at a rate of 4% on
gross income from business transactions.

17. Complete the diagram. Explain your reasoning.

The consumer pays

$_____ more per
er lei
A retailer buys because of the
he
a box of leis for tax.
$15 per lei.

The retailer
ailerr
The retailer
ailer charges an extra
ra 4.166%
4 166%
doubles
do thee price per lei to cover
pe
of each
h lei. the tax.

18. Complete the diagram. Explain your reasoning.

The consumer pays

y
$_____ more because
use
e
A retailer buys of the tax.
a sur
surfboard for
$470.

The retailer
tailer
The retailer
ailer charges an extra 4.166%
4 16
66%
mar
marks up thee price of to cover the tax.
the surfboard
rd by $30.

19. A retailer purchases $150 worth of food. Draw a diagram

showing a chain of events that could occur. Is the tax
regressive, flat, or progressive? Explain.

20. A retailer purchases $70 worth of medicine. Draw a diagram showing a chain of events that could occur.
Is the tax regressive, flat, or progressive? Explain.

21. A business passes on the general excise tax to the consumer as a charge that is a percent of the retail price.
The charge is also subject to the general excise tax. The business cannot charge more than 4.166% of the
retail price because consumer protection laws prohibit businesses from passing on an amount that exceeds
the general excise tax on a transaction. Explain why the percent is 4.166%, not 4%.

22. Oahu Surcharge The island of Oahu adds an extra 0.5% surcharge to the general excise tax to fund its
mass transit system. Discuss ways in which the tax might help the people who are paying it. (See Example 6.)

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5.1 Flat Tax & Political Philosophy 211

Extending Concepts
Deductions and Credits In Exercises 23–28, use the information below. Assume the country
has a flat income tax rate of 14%.
A tax deduction is an amount that is subtracted from your gross income
before the tax rate is applied to determine your income tax liability. A
tax credit is an amount that is subtracted from your income tax liability
after the income tax rate has been applied.

23. A taxpayer has a gross income of $45,000 and tax deductions of

$10,000. How much income tax does the taxpayer owe?

24. A taxpayer has a gross income of $65,600 and tax deductions of $12,000.
How much income tax does the taxpayer owe?

25. A taxpayer has a taxable income of $68,500 and

tax credits of $3000. How much income tax does
the taxpayer owe?

26. A taxpayer has a gross income of $76,400, tax

deductions of $11,000, and tax credits of $2000.
How much income tax does the taxpayer owe?

27. Which saves a taxpayer more, a tax deduction of $1000 or a tax credit of $1000?
Explain your reasoning.

28. Sketch a graph comparing income tax as a percentage of income for a 14% flat tax on all
income and a 14% flat tax on all income over $12,000. Explain how tax deductions can
make a flat tax more progressive.

Negative Income Tax In Exercises 29 and 30, use the information below. Assume the country
has a flat income tax rate of 14%.
Under a negative income tax system, deductions are subtracted from your gross income to determine
your taxable income. If the difference is positive, the flat income tax rate is applied to determine how
much income tax you owe. If the difference is negative, you receive a check from the government
equal to the absolute value of the difference times the flat tax rate. Let the deduction for an adult be
$14,000 and the deduction for a dependent be $7000.

29. A family of 2 adults and 2 dependents earns $40,000.

a. Does the family owe income tax or receive a check from the government? What is
the amount?
b. What is the cutoff amount for the family to qualify for a check from the government?

30. A family of 2 adults and 3 dependents earns $72,000.

a. Does the family owe income tax or receive a check from the government? What is
the amount?
b. What is the cutoff amount for the family to qualify for a check from the government?

Copyright © Larson Texts, Inc. All rights reserved.

212 Chapter 5 The Mathematics of Taxation

5.2 Graduated Income Tax

Calculate a graduated income tax.
Analyze a graduated income tax system.
Compare a graduated income tax with a flat income tax.

Calculating a Graduated Income Tax

A graduated tax (or progressive tax) is a tax with a rate that increases as the
taxable amount increases. In the United States, the federal income tax is a
Study Tip graduated tax, as are the income taxes in 36 states.
When reading material The table shows the graduated income tax for the taxable income (after
about income tax rates, deductions) of a single person in 2010. The rate for each taxable income bracket
be sure you understand is called the marginal tax rate. The overall rate of tax that a person pays on his or
the definitions the writer her entire taxable income is called the effective tax rate.
is using. Income tax rates
are an emotional issue, Taxable Income Marginal Tax Rate
and writers may show their
personal bias when writing
$0–$8375 10%
about income tax policies. $8376–$34,000 15%
$34,001–$82,400 25%
$82,401–$171,850 28%
$171,851–$373,650 33%
$373,651+ 35%

Calculating a Graduated Income Tax

Use the table above to find the income tax and the effective tax rate for each
taxable income.
a. $67,850 b. $1,000,000

SOLUTION
a. A B C b. A B C
Taxable Marginal Taxable Marginal
1 Income Tax Rate Tax 1 Income Tax Rate Tax
$34,000 Ź $8375 2 $8,375.00 10% $837.50 2 $8,375.00 10% $837.50
$67,850 Ź $34,000 3 $25,625.00 15% $3,843.75 3 $25,625.00 15% $3,843.75
4 $33,850.00 25% $8,462.50 4 $48,400.00 25% $12,100.00
5 $67,850.00 $13,143.75 5 $89,450.00 28% $25,046.00
6 6 $201,800.00 33% $66,594.00
7 7 $626,350.00 35% $219,222.50
8 8 $1,000,000.00 $327,643.75
9 9
13,143.75 327,643.75
The effective tax rate is — ≈ 19.4%. The effective tax rate is — ≈ 32.8%.
67,850.00 1,000,000.00

Checkpoint Help at

Find the income tax and the effective tax rate for a taxable income of $92,500.

Copyright © Larson Texts, Inc. All rights reserved.

5.2 Graduated Income Tax 213

Calculating a Graduated Income Tax

As of the writing of this text, California’s income tax rates were the second
highest of all state income tax rates. Use the table to find the state income tax
for a taxable income of $200,000. What was the effective tax rate?

Taxable Income Marginal Tax Rate

te
$0–$7124 1.25%
$7125–$16,890 2.25%
$16,891–$26,657 4.25%
$26,658–$37,005 6.25%
$37,006–$46,766 8.25%
$46,767–$1,000,000 9.55%
$1,000,001+ 10.55%

SOLUTION
A B C
Taxable Marginal
1 Income Tax Rate Tax
2 $7,124.00 1.25% $89.05
3 $9,766.00 2.25% $219.74
4 $9,767.00 4.25% $415.10
5 $10,348.00 6.25% $646.75
6 $9,761.00 8.25% $805.28
7 $153,234.00 9.55% $14,633.85
The three graduated tax tables 8 $200,000.00 $16,809.77
on these two pages are for 9
single taxpayers. In many cases,
16,809.77
married couples pay less income The effective tax rate was — ≈ 8.4%.
200,000.00
tax than if they stayed single.
This occurs primarily in lower Checkpoint Help at
taxable income brackets.
As of the writing of this text, Hawaii’s income tax rates were the highest of all
state income tax rates. Use the table to find the state income tax for a taxable
income of $200,000. What was the effective tax rate?

Taxable Income Marginal Tax Rate

$0–$2400 1.40%
$2401–$4800 3.20%
$4801–$9600 5.50%
$9601–$14,400 6.40%
$14,401–$19,200 6.80%
$19,201–$24,000 7.20%
$24,001–$36,000 7.60%
$36,001–$48,000 7.90%
$48,001–$150,000 8.25%
$150,001–$175,000 9.00%
$175,001–$200,000 10.00%
$200,001+ 11.00%

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214 Chapter 5 The Mathematics of Taxation

Analyzing a Graduated Income Tax System

Analyzing a Graduated Tax System

Use the table and the circle graph to analyze the income tax system in the
United States.
Group Adjusted Gross Income Total Federal Income Tax
Revenue: Who Pays What?
Top 1% $380,354+
Next 4% $159,619−$380,353 Bottom 50%:
Next 5% $113,799−$159,618 3%
Next 15% $67,280−$113,798 Next Top 1%:
Next 25% $33,048−$67,279 25%: 38%
Bottom 50% $0−$33,047 11%

Next 15%:
16%

Next
Next 4%:
5%:
21%
11%

Of all wage earners in the United SOLUTION

SO O
States, about half pay no federal
The income tax system in the United States is a classic progressive system. The
income tax. This is not to say that
top 25% of all wage earners pay 86% of the total income tax revenue. The bottom
they have no payroll deductions.
75% of all wage earners pay only 14% of the total income tax revenue.
They do pay federal Social Security
tax and federal Medicare tax.
Checkpoint Help at

The circle graph shows Adjusted Gross Income Earned:

how the adjusted gross Who Gets It?
income earned in the
United States is divided
among the different Bottom
income groups. 50%: Top 1%:
12% 20%
Compare each income
group’s percent of the
adjusted gross income Next 25%:
20%
earned with the percent Next 4%:
of the total income tax 15%
revenue it pays. What
can you conclude? Next
Next 15%: 5%:
22% 11%

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5.2 Graduated Income Tax 215

Analyzing Federal Tax Revenue

What percent of the U.S. federal tax revenue comes from individual income taxes?

Sources of Federal Revenue in 2010

010

Estate and gift taxes: $19

Other: $20

Customs duties: $25

Source
Excise taxes: $67

Federal Reserve: $76

Corporate income taxes: $191

Social Security & Medicare taxes: $865

Individual income taxes: $899

0 100 200 300 400 500 600 700 800 900 1000
Amount (billions of dollars)

SOLUTION
The total revenue for the federal government in 2010 was
899 + 865 + 191 + 76 + 67 + 25 + 20 + 19 = $2,162 billion
= $2,162,000,000,000.
The percent of this that came from individual income taxes was
899,000,000,000
—— ≈ 41.6%.
2,162,000,000,000

Checkpoint Help at

Deciding how to display data is a field in mathematics and statistics called

information design. You have already looked at several traditional styles of
information design in this text, including bar graphs and circle graphs. In
Section 9.1, you will look at several nontraditional styles.

a. Enter the data in Example 4 into

a spreadsheet. Make a circle graph
and label each section with its title,
amount, and percent.

b. Use the spreadsheet to create a

third graph of the data.

c. Which type of graph do you

prefer? Explain.

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216 Chapter 5 The Mathematics of Taxation

Comparing Graduated and Flat Income Tax Systems

Comparing Possible Systems

The total personal income in the United States is estimated to be about
$13 trillion. The federal income tax revenue is about $1 trillion, and there
are about 150 million taxpayers.
a. What percent of the total personal income is paid to federal income tax?

Discuss the following options for raising this amount of income tax revenue.
b. Assessment: Every taxpayer pays the same amount.
c. Flat tax on total income: Every taxpayer pays the same rate.
d. Graduated tax on taxable income: Continue the current U.S. system.
e. Graduated tax on total income: Eliminate deductions and loopholes.

SOLUTION
a. The total federal income tax revenue is
1,000,000,000,000
—— ≈ 0.0769
13,000,000,000,000
= 7.69%

of the total personal income in the United States.

b. For each taxpayer to pay the same amount, the amount would have to be
1,000,000,000,000
—— ≈ $6667.
150,000,000
This is not feasible. People with low incomes cannot pay this amount
without extreme hardship.
c. The rate necessary to raise the revenue is the rate found in part (a). If every
taxpayer pays 7.69% of his or her total income, the federal government
will raise $1 trillion in income tax.
d. The current graduated income tax system has been developing since 1913.
It contains thousands of pages of tax code. With the many deductions and
exemptions, a significant amount of income in the United States goes untaxed.
Warren Buffett is an American e. This is not a description of the current income tax code in the United States.
investor and industrialist. He is Taxpayers can subtract deductions from their total income to reduce their tax
consistently ranked among the liability. There are many deductions, such as some types of medical expenses,
world’s wealthiest people. certain types of interest payments, contributions to charities, and deductions
Buffett is an outspoken critic of for dependents. If these deductions are removed, it will no longer be possible
the American income tax system. for one of the wealthiest Americans, Warren Buffett, to claim that he pays only
17.7% tax on an annual income of approximately $46 million.

Checkpoint Help at

Write a detailed description of an income tax system that you think would be fair
to all citizens in the United States.

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5.2 Graduated Income Tax 217

Analyzing the Deficit

Use the information graphic to estimate how much additional income tax revenue
the U.S. government would have to raise to eliminate its annual deficit. What
would each taxpayer have to pay in a flat tax system?
percent wou

Federal Budget for 2010

4

Interest

Nondefense
3
Amount (trillions of dollars) Discretionary
programs

Defense

2
Medicaid

Medicare

Mandatory
1 Other programs

Social Security

0
Receipts Expenditures

SOLUTION
The expenses were projected to be about $3.58 trillion. The income was projected to be
about $2.3 trillion. So, the deficit was projected to be about $1.28 trillion. With a total
personal income of about $13 trillion, each taxpayer would have to pay an additional
1,280,000,000,000
—— ≈ 9.8%
13,000,000,000,000
to cover the deficit. With the rate from Example 5(a), this implies that the federal
government could balance its budget by charging each American taxpayer a flat
tax rate of about 17.5%.

Checkpoint Help at

Suppose you are given the task of balancing the federal budget without
raising taxes. Which expenses would you eliminate to balance the budget?
Explain your reasoning.

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218 Chapter 5 The Mathematics of Taxation

5.2 Exercises
J
Joint Return Tax Rates The table shows the marginal tax rates for a married
ccouple filing jointly. In Exercises 1–4, use the table. (See Examples 1 and 2.)

Married Filing Jointly in 2010

Taxable Income Marginal Tax Rate

$0–$16,750 10%
$16,751–$68,000 15%
$68,001–$137,300 25%
$137,301–$209,250 28%
$209,251–$373,650 33%
$373,651+ 35%

1. You and your spouse have a taxable income of $58,750.

How much do you pay in income tax? What is the
effective tax rate?

2. You and your spouse have a taxable income of $75,000. For tax purposes, your marital status is determined on
Compare your income tax with that of a single taxpayer the last day of the tax year. Even if you get married on
who has the same taxable income. December 31, you can file jointly for the whole year.

3. You and your spouse have an adjusted gross income of $141,500. You subtract a standard deduction
of $11,400 and 2 personal exemptions of $3650 each to determine your taxable income. How much
do you pay in income tax? What is the effective tax rate?

4. You have an adjusted gross income of $214,000, and your spouse has no income.
a. You subtract a standard deduction of $11,400 and 2 personal exemptions of $3650 each to determine
your taxable income. How much do you pay in income taxes? What is the effective tax rate?
b. The standard deduction for a taxpayer filing “single” is $5700, and the personal exemption is
$3650. Suppose you are single and subtract the standard deduction and personal exemption to
determine your taxable income. How much more do you pay in income tax than in part (a)?
How much higher is the effective tax rate?
Married Filing Separately in 2010
5. Married Filing Separately The table shows the marginal
tax rates for a married couple filing separately. You and Taxable Income Marginal Tax Rate
your spouse have a taxable income of $54,680. Do you pay
less tax to file all the income for yourself under “married $0–$8375 10%
filing separately” rather than “married filing jointly”? $8376–$34,000 15%
Explain your reasoning. (See Examples 1 and 2.)
$34,001–$68,650 25%
$68,651–$104,625 28%
6. Effective Tax Rate Do incomes in the same bracket have
the same effective tax rate? Explain your reasoning. $104,626–$186,825 33%
(See Examples 1 and 2.) $186,826+ 35%

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5.2 Graduated Income Tax 219

South Carolina State Income Tax In Exercises 7 and 8, use the circle graphs. (See Example 3.)

South Carolina State Income Tax: South Carolina Total Income Earned:
Who Pays What? Who Gets It?
Bottom 50%:
2.2%
Top 1%: Bottom
24.8% Next 25%: 50%: Top 1%:
8.5% 11.9% 22.1%
Next 25%:
12.9%

Next 4%:
Next 15%: 19.8% Next 15%: Next 4%:
24.9% 24.9% 19.4%

Next 5%: Next 5%:

15.4% 13.2%

7. Use the circle graphs to analyze South Carolina’s state income tax.

8. Use the six income groups to compare South Carolina’s state income tax to the federal income tax.

South Carolina State and Local Tax Revenue In Exercises 9–12, use the bar graph.
(See Example 4.)
9. What percent of South Carolina’s
state and local tax revenue comes Sources of State and Local Tax Revenue
from individual income taxes? for South Carolina in 2008
8

Motor vehicle license taxes: $162

10. What percent of South Carolina’s
state and local tax revenue comes
Corporate income taxes: $320
from sales taxes?
Other taxes: $926
Source

11. Compare South Carolina’s sources

of state and local tax revenue with Individual income taxes: $2864
the federal government’s sources
of tax revenue. Property taxes: $4299

Sales taxes: $4592

12. Enter the data into a spreadsheet.
0 1000 2000 3000 4000 5000
a. Make a circle graph and label Amount (millions of dollars)
each section with its title,
amount, and percent.

b. Use the spreadsheet to create a third graph of the data.

c. Which type of graph do you prefer? Explain.

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220 Chapter 5 The Mathematics of Taxation

California State Income Tax In Exercises 13 and 14, use the information below. (See Example 5.)
In 2008, the total personal income in California was about $1.61 trillion. The budgeted
income tax revenue was about $58 billion. You are a member of a committee analyzing
California’s state income tax.

13. Discuss using a flat tax on total income to raise this amount of income tax revenue.

14. Discuss using a graduated tax on total income to raise this amount of income
tax revenue. Would the marginal tax rates be higher or lower than California’s
current graduated tax on taxable income? Explain your reasoning.

California State Budget In Exercises 15 and 16, use the information graphic. (See Example 6.)

2008 California Govenor’s Budget

160,000
Environmental
protection $141,038
140,000
$129,787 Legislative, judicial, executive
Other
120,000 General government
Corrections and rehabilitation
Business, transportation,
Millions of dollars

100,000 and housing

80,000
Health and human
services

60,000

40,000

Education
20,000

0
Revenue Expenditures
estimate estimate

15. Estimate how much additional income tax revenue California would have to raise to
eliminate its annual deficit. What percent would each taxpayer have to pay in a
flat tax system?

16. In the 2008 California state budget, sales taxes were projected to account for 27% of
the state’s revenue. Suppose the state eliminated its sales taxes.
a. How much additional income tax revenue would California have to raise to match
its original revenue estimate? What percent would each taxpayer have to pay in a
flat tax system?
b. How much additional income tax revenue would California have to raise to eliminate
its annual deficit? What percent would each taxpayer have to pay in a flat tax system?

Copyright © Larson Texts, Inc. All rights reserved.

5.2 Graduated Income Tax 221

Extending Concepts
2010 Marginal Tax Rates
L
Long-Term Capital Gains In Exercises 17–20,
for Single Taxpayers
use the table and the information below.
u
Taxable Ordinary Long-term
Long-term capital gains, such as profit from the sale of stock
Income Income Capital Gains
held for more than one year, are taxed at different rates than
ordinary income. For instance, if you have $25,000 of ordinary $0–$8375 10% 0%
income and $10,000 of income from long-term capital gains, $8376–$34,000 15% 0%
then your income from $0 to $25,000 is taxed at the marginal
rates for ordinary income and your income from $25,001 to $34,001–$82,400 25% 15%
$35,000 is taxed at the marginal rates for long-term capital $82,401–$171,850 28% 15%
gains. The income brackets are filled by ordinary income first,
$171,851–$373,650 33% 15%
and then by long-term capital gains beginning on the first
dollar after ordinary income. $373,651+ 35% 15%

17. A taxpayer has $30,000 of taxable ordinary income and

$5000 of taxable income from long-term capital gains.
Find the income tax and the effective tax rate.

18. A taxpayer has $100,000 of taxable ordinary income and $75,000 of

taxable income from long-term capital gains. Find the income tax and
the effective tax rate.

19. A taxpayer has a taxable income of $1,000,000.

a. Find the income tax and the effective tax rate when 10% of the taxable
income is from long-term capital gains.
b. Find the income tax and the effective tax rate when 50% of the taxable
income is from long-term capital gains.
c. What happens to the effective tax rate as the percent of taxable income
from long-term capital gains increases? Explain your reasoning.

20. Using the graph, explain how the taxes paid as a percent of AGI can be
lower for a taxpayer in a higher income bracket than for a taxpayer in a
lower income bracket.

Copyright © Larson Texts, Inc. All rights reserved.

222 Chapter 5 The Mathematics of Taxation

5.1–5.2 Quiz
Alabama State and Local Taxes In Exercises 1 and 2, use the display.

Alabama State & Local Taxes Paid by Income Groups

(Nonelderly taxpayers)

8.0
Percent of income

6.0

4.0

2.0

0.0
Lowest Second Middle Fourth Next Next Top
20% 20% 20% 20% 15% 4% 1%
Sales & excise taxes 7.8% 7.1% 5.9% 4.6% 3.5% 2.1% 1.1%
Property taxes 1.3% 1.1% 1.1% 1.1% 1.0% 1.2% 1.0%
Income taxes 1.1% 2.3% 2.7% 2.9% 2.8% 2.6% 2.7%

1. The income for a family in the second 20% is $25,000. How much, in dollars, does this
family pay for each type of tax?
2. Decide whether each type of tax is regressive, flat, or progressive in Alabama.
Explain your reasoning.
a. Sales and excise taxes b. Property taxes

A
Alabama State Income Tax In Exercises 3–5, use the information below.
Ala
Alabama has a graduated
income tax. The table Marginal Married
Single
shows the marginal tax Tax Rate Filing Jointly
rates for the “single” and $0–$500 2% $0–$1000
“married filing jointly”
statuses. $501–$3000 4% $1001–$6000

$3001+ 5% $6001+

3. Find the state income tax and the effective tax rate for a
single taxpayer with a taxable income of $30,000.

4. Find the state income tax and the effective tax rate for a married
couple filing jointly with a taxable income of $100,000.

5. Analyze the following statement.

“Although Alabama’s income tax is essentially flat, the federal income tax is still progressive.”
Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, 3rd Edition,
Institute on Taxation and Economic Policy

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Chapter
p 5 Project
j Math & the American Dream 223

Math & the American Dream

PROJECT: Finding a Tax Freedom Day

1. You graduate from college and accept a job in San Francisco. You have a
taxable income of $105,000. Find the tax you pay in each category. Then
find the percent of your total taxable income that you pay in taxes.
Federal income tax (Use the rates on page 212.)
California state income tax (Use the rates on page 213.)
Sales tax of 9.5% on $35,000 for a new car
Sales tax of 9.5% on $24,000 in other purchases
Social Security tax of 6.2%
Medicare tax of 1.45%
Gasoline excise tax of $0.35 per gallon
(30 gallons per week total)
Property tax of 1.164% on $950,000 for a mortgaged home
Indirect taxes paid in higher prices of goods purchased $5000
All other taxes (direct and indirect) $3500

2. Tax Freedom Day is the day in the year that the average American has
earned enough to pay all the taxes that he or she must pay for the year.
Find the Tax Freedom Day using the information in Exercise 1.

3. Use the My Tax Freedom Day Calculator* at [Link] to calculate

your actual Tax Freedom Day.

Tax Freedom Day (1971−2011)

6/1

5/22

5/12

5/2

4/22

4/12

4/2

3/23

3/13
71

74

77

80

83

86

89

92

95

98

01

04

07

09

11
19

19

19

19

19

19

19

19

19

19

20

20

20

20

20

Tax Freedom Day Adjusted to Add Federal Budget Deficit

Recession

*Provided
id d by
b [Link]
M T F d D
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224 Chapter 5 The Mathematics of Taxation

5.3 Property Tax

Calculate a property tax.
Analyze assessments and tax credits.
Analyze exemptions for property tax.

Calculating a Property Tax

In the United States, a property tax (or millage tax) is a tax levied by city and
county governments on real and personal property to generate operating revenues
to pay for such public services as schools and emergency services.
Property tax codes vary by state, county, and city. Here are some common
characteristics of property taxes.
• Property taxes are generally assessed on land, buildings, and homes, not on
other forms of real property, such as jewelry or boats.
• Property taxes are often expressed in mills but can also be expressed as percents.
• Market value is an estimate of the price for which a home could sell. Assessed
value is a percent (called the assessment level) of a property’s market value.
Property tax is calculated on assessed value.

Property Tax rate Assessment level

= × × Market value
tax (decimal form) (decimal form)

Assessed value

Writing a Tax Rate in Decimal Form

A tax rate of 1 mill means $1 of taxes per $1000 of assessed value. To change
Study Tip a tax rate to decimal form, divide by 1000.
Remember that a milliliter 235
1 Example: 235 mills = — = 0.235 (decimal form)
is of a liter. To change 1000
1000
a mill to decimal form,
divide by 1000. Calculating a Property Tax
There are huge differences in property tax rates throughout the United States.
Find the property tax for a $500,000 home in each city.
a. Bridgeport, CT: Tax rate: 38.7 mills, Assessment level: 70%
b. Cheyenne, WY: Tax rate: 71 mills, Assessment level: 9.5%

SOLUTION
a. Property tax = 0.0387(0.70)(500,000) = $13,545.00
b. Property tax = 0.071(0.095)(500,000) = $3372.50

Checkpoint
Ch
he Help at

Find the property tax for a $400,000 home in each city.

c. Denver, CO: Tax rate: 6.8 mills, Assessment level: 8%
d. Manchester, NH: Tax rate: 17.4 mills, Assessment level: 100%
Copyright © Larson Texts, Inc. All rights reserved.
5.3 Property Tax 225

You can see from Example 1 that the tax rate of a property tax does not by itself
tell you whether the tax is high or low. To decide whether a property tax is high
or low, use the tax rate and the assessment level to determine the effective rate
of a property tax. Effective rates are usually expressed as percents.

Effective rate Tax rate Assessment level

= ×
(decimal form) (decimal form) (decimal form)

State and Local Property Taxes Per Capita by Rank

WA
26 VT NH ME
MT ND 7 4 11
25 29
OR MN
30 ID 20 MA
SD WI NY
41 8
32 12 5
WY MI
15 RI 6
2
IA PA CT 3
NV NE 22 24 NJ 1
16 OH
23 UT IL IN 27 DE 43
39 CO 9 31 WV MD 28
CA VA
14 21 KS MO KY 44
18
19 37 45
NC 38
AZ OK TN 42
34 NM 47 AR SC
48 49 36
GA LEGEND
AL
MS 33 Less than
50
40 $1000
TX LA
AK 17 46 $1000–$2000
13 Greater than
FL $2000
10

HI
35

Calculating Effective Rates

Find the effective property tax rate in each city.
a. Omaha, NE: Tax rate: 21.3 mills, Assessment level: 96%
b. Birmingham, AL: Tax rate: 80.2 mills, Assessment level: 10%

SOLUTION
a. Effective rate = 0.0213(0.96) ≈ 0.02 = 2%
b. Effective rate = 0.0802(0.10) ≈ 0.008 = 0.8%

Checkpoint Help at

Find the effective property tax rate in each city.

c. Newark, NJ: Tax rate: 27.4 mills, Assessment level: 59.7%
d. Honolulu, HI: Tax rate: 3.4 mills, Assessment level: 100%
e. New York, NY: Tax rate: 167 mills, Assessment level: 3.7%

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226 Chapter 5 The Mathematics of Taxation

Analyzing Assessments and Tax Credits

The term assessed value of a home or of land can be confusing to people. Do not
confuse the terms assessed value and market value.

• Market Value: When you apply for a home mortgage, an appraiser determines
the market value of your home. This appraised market value is the amount that
the appraiser thinks the home could sell for. Home appraisers are in private
business. They are not government employees.

• Assessed Value: Your local government conducts assessments of your property.

A government assessor determines the market value and then calculates the
assessed value. You pay property taxes based on your assessed value.
Properties are generally assessed only once every several years, unless
you make a considerable home improvement. If you do not agree with the
government’s assessment of your home, you do have the opportunity to appeal.

Appealing an Assessed Value

You move into a new home and receive the following invoice.

From talking to your neighbors, you think that the assessed value is too high.
Two of your neighbors live in comparable homes and have assessed values of
$250,000. Is it worth your time and effort to appeal the assessed value?

SOLUTION
Using your current tax bill, your property tax is
Property tax = 0.185(350,000)
= $64,750.
If you are successful in getting the assessed value lowered to $250,000, the
property tax will be
Property tax = 0.185(250,000)
= $46,250.
You could save $18,500 each year. It is probably worth appealing.

Checkpoint Help at

You take out a mortgage for $243,000. Your monthly loan payment is $1073.64.
You must also pay for home insurance and property tax. Home insurance costs
$650 annually. The tax rate is 358 mills, and the assessed value of your home is
$85,050. What is your total monthly payment?

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5.3 Property Tax 227

It is relatively common for municipalities to issue credits for property tax.

Credits are subtracted after taxes have been calculated. One common credit
is the homestead tax credit. To qualify as a homestead, a property must be
the primary residence of the homeowner.

Applying a Tax Credit

The assessed value of a homeowner’s primary residence is $75,000, and the
property tax rate is 40 mills. The homeowner receives a homestead tax credit
according to the graph. How much does the homeowner pay for property tax?

Homestead Tax Credit

$350

$300

Study Tip $250

Homestead exemption
Credit amount

laws have three main

characteristics. $200

1. They prevent the forced

sale of a home to meet $150
creditor demands.
2. They provide a surviving $100
spouse with shelter.
3. They provide an
exemption from $50
property taxes.
$0
$25 $75 $125 $175 $225 $275 $325 $375 $425
Assessed value (thousands)

SOLUTION
The graph shows that the homestead tax credit is $300 for a property with an
assessed value of $75,000. So, the property tax is

Tax rate Assessed value Credit

Property tax = 0.04(75,000) − 300

= $2700.

The homeowner pays $2700 for property tax.

Checkpoint Help at

The assessed value of a homeowner’s primary residence is $125,000, and the

property tax rate is 70 mills. The homeowner receives a homestead tax credit
according to the graph. How much does the homeowner pay for property tax?

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228 Chapter 5 The Mathematics of Taxation

Analyzing Property Tax Exemptions

It is relatively common for municipalities to have exemptions for property tax.
Exemptions apply to the assessed value of a property. Here are some typical
(full or partial) exemptions.

• Homeowners who are 65 or older

• Homeowners with limited incomes
• Homeowners on full-time disability
• Homeowners who are veterans
• Homeowners who are in the clergy
• Property owned by government agencies
• Property owned by schools
• Property owned by religious organizations
• Property owned by nonprofit organizations

Estimating Lost Tax Revenue

Suppose that all property in the United States is subject to property tax.
Estimate the additional tax that could be collected.

SOLUTION
Here is one way to do this. Use the following information from the U.S. Census
Bureau. It shows the total annual tax revenue for state and local governments in
Study Tip the United States.
To find the estimate of Motor vehicle tax Alcohol tax
$176 billion in Example 5, Tobacco tax
Gasoline tax
use the equation Corporate income tax
Other

( )
Total
70% of property
tax
= $410 billion
Sales tax Individual
to determine that the income tax
total property tax is about
$586 billion. This implies
that the lost revenue is
Property tax:
about $176 billion.
$410,000,000,000

Suppose that 30% of the property in the United States is tax exempt. You can
conclude that about $176 billion a year is lost to property tax exemptions.

Checkpoint Help at

The United States’ policy of “separation of church and state” stems from the
First Amendment to the Constitution, which reads, “Congress shall make no
law respecting an establishment of religion, or prohibiting the free exercise
thereof. . ..” Some people argue that allowing religious organizations to be exempt
from property tax is a violation of the First Amendment. What do you think?

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5.3 Property Tax 229

Analyzing the Value of an Exemption

U the information below to determine how much the veteran pays for property
Use
ttax and saves from the military exemption.

• A person is 30 years old and has been discharged from 8 years of service
in the U.S. military.
• The person buys a home whose assessed value is $75,000.
• The tax rate is 65 mills.
• The municipality has a 15% exemption (up to $5000) for veterans.

SOLUTION
The amount of the exemption is
T

Exemption rate Assessed value

Exemption = 0.15(75,000)

= $11,250.

This exceeds the maximum, so the exemption is $5000.

T
The property tax is
T
Tax rate Assessed value Exemption
Study Tip
Property tax codes vary Property tax = 0.065(75,000 − 5000)
a lot throughout the
United States. The time = $4550.
to check your local codes
is before you move into a The tax savings from the $5000 reduction in the assessed value is
municipality. Exemptions
also vary, even in
Tax rate Exemption
neighboring municipalities.
Tax savings = 0.065(5000)
= $325.
The veteran pays $4550 for property tax and saves $325 from the exemption.

Checkpoint Help at

Use the information below to determine how much the veteran pays for
property tax and saves with the military exemptions from age 26 to age 40.

• A person is 26 years old and has been

discharged from 8 years of service in the
U.S. military.

• The person buys a home whose assessed

value is $36,800.

• The tax rate is 95 mills.

• The municipality has a 10% exemption

(up to $4000) for veterans.

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230 Chapter 5 The Mathematics of Taxation

5.3 Exercises
New York Property Taxes In Exercises 1–6, find (a) the property tax for a $200,000 home in the
town or city and (b) the effective property tax rate in the town or city. (See Examples 1 and 2.)
1. Lewiston 2. Jamestown 3. Fulton

4. Bolton 5. Saratoga Springs 6. Cohoes

Bolton
Tax rate: 12.99 mills
Assessment level: 65%
Fulton
Lewiston
Tax rate: 51.57 mills
Tax rate: 34.62 mills
Assessment level: 100%
Assessment level: 84% Saratoga Springs
Tax rate: 23.25 mills
Assessment level: 82%

Albany Cohoes
Tax rate: 54.96 mills
Assessment level: 54%

Jamestown
Tax rate: 49.4 mills
Assessment level: 100%

7. Relocating You accept a job in Albany. You are moving from

a different state and narrow your home search to a $150,000
house in Saratoga Springs and a $140,000 house in Cohoes.

a. Which house has higher property taxes? How much higher are the taxes?
b. The drive to work from the home in Saratoga Springs takes twice as much time as
the drive to work from the house in Cohoes. Based on driving time, property taxes,
and home price, which house do you prefer? Explain.

8. Village of Lakewood A village near Fire department: 4.36% Home & community services:
Culture, recreation, & 4.28%
Jamestown claims that the owner of
employee benefits: 3.58% Debt service: 4.32%
a $90,000 house pays a total of
Street lighting: 2.05% Clerical staff &
$3243.60 in property taxes, of
Snow removal: 2.15% employee benefits:
which $642.60 goes to the village. 10.41%
Library: 2.05%
a. What is the combined tax rate? Departmental
expenses:
b. How much does the owner of a
6.25%
$120,000 house in the village pay
in property taxes? How much goes Police salaries,
to the village? employee
Department of
benefits,
Public Works
c. The circle graph shows how village & equipment:
salaries,
tax dollars are spent. How much of the 39.75%
employee benefits,
village taxes in part (b) go toward snow & equipment:
removal? police? 20.81%

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5.3 Property Tax 231

Property Tax Bills Property taxes in Anytown consist of town, county, and school taxes.
The town and county taxes are due in May. The school taxes are due in October.
In Exercises 9–13, use the property tax bills shown. Assume that Clarice and Fred are
subject to the same tax rates. (See Examples 3 and 4.)

9. How much is Clarice’s school tax bill? How much more does she
pay for town and county taxes than Fred?

10. Clarice plans to sell her home within the next 2 years. Her neighbor’s
home is similar and has an assessed value of $100,000. Is it worth
Clarice’s time and effort to appeal the assessed value shown on the
property tax bill? Explain.

11. Fred owns a home similar to three other homes on Yawkee Hill
Road. The assessed values of the other 3 homes are $47,000,
$49,000, and $60,000. Should Fred appeal the assessed value
shown on the property tax bill? Explain.

12. After an appeal, the assessed value of Clarice’s home decreases

to $100,000. She receives a homestead tax credit according to the
graph on page 227. How much does she pay in property tax?

13. Fred does not appeal the assessment. He receives a homestead tax
credit according to the graph on page 227. How much does he pay
in property tax?

14. Raising Taxes A municipality can increase taxes by increasing

the tax rate. Describe another method municipalities can use to
raise property taxes.

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232 Chapter 5 The Mathematics of Taxation

Tax Breaks The circle graph shows the types Assessors: $46 million Townships: $35 million
of property taxes collected in a state in 1 year. Hospitals: $83 million Ag extension: $16 million
In Exercises 15–17, use the circle graph. Merged area school: Miscellaneous:
(See Example 5.) $100 million $10 million
15. What percent of the property taxes went to
K–12 schools?
Counties:
16. Without the military exemption, the state would $910 million
have collected about 0.06% more in property K–12 schools:
taxes. Estimate the total military exemption. $1.8 billion

Cities:
17. Without the homestead tax credit, the state
$1.3 billion
would have collected about 2.3% more in
property taxes. Estimate the total property Property tax
taxes that would have been collected without total: $4.3 billion
the homestead tax credit.

Veteran Exemption In Exercises 18 and 19, use the information below. (See Example 6.)
In New York, veterans of the following conflicts can receive property tax exemptions on
their primary residence, as detailed in the table.

EXEMPTION RATE FOR ELIGIBLE VETERANS

• Persian Gulf War • Vietnam War
• Korean War • World War II
Requirements Percentage Maximum
for Eligible Assessed Value Exemption Rate • World War I • Mexican Border Period
Veterans Reduction Reduction
Served during a Max of $4140 for 18. A veteran of the Korean War did not serve in a
specified period 15% Class 1; $24,300 combat zone and is not disabled. He applies for
of war (See list) for Classes 2 & 4
the military exemption. The assessed value of his
Max of $6900 for Class 1 home is $150,000. How much does he save
Served in a
Plus 10% Class 1; $40,500 on property taxes when the tax rate is 85 mills?
combat zone
for Classes 2 & 4
Disabled (Gold Star Assessed value Max of $13,800 for 19. A nondisabled veteran of the Persian Gulf War who
parents are not eligible multiplied by Class 1; $81,000 served in a combat zone applies for the military
for this portion of the 50% of the vet’s for Classes 2 & 4
exemption. The assessed value of her Class 2
vet’s exemption) disability rating
property is $140,000. How much does she save
on property taxes when the tax rate is 32 mills?

SOLAR HOT WATER SYSTEM

20. Solar and Wind Power Texas offers a property tax
exemption on qualifying wind and solar power energy SOLAR HEAT
COLLECTOR
devices, such as the solar hot water system shown. HOT WATER
These devices generally increase the assessed value of FROM COLLECTOR
COLD WATER
a home. This increase is the amount of the exemption. TO COLLECTOR
(See Example 6.) HOT WATER
TO HOUSE
COLD WATER
a. After installation of the hot water system, the FROM STREET
assessed value of a home increases by $15,000 to
SOLAR STORAGE
a total of $175,000. How much is the exemption? TANK

b. The county tax rate is 9 mills. How much does the CIRCULATING PUMP
exemption save the homeowner in county taxes?

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5.3 Property Tax 233

Extending Concepts
Calculating Property Tax Rates In Exercises 21–23, use the information below.
Property tax rates are calculated based on the amount of money needed from property
taxes, called a levy, and the taxable assessed value of all property within a municipality.

levy
Property tax rate = —— × 1000 mills
taxable assessed value

21. A town levy is $600,000, and the taxable assessed value of all property in the town is
$50,000,000. Find the property tax rate.

22. A county levy is $50,000,000, and the taxable assessed value of all property in the county is
$1,000,000,000. Find the property tax rate.

23. A town levy is $750,000, and the taxable assessed value of all property in the town is $80,000,000.
Find the property tax for a home with an assessed value of $50,000.

Equalization In Exercises 24–28, use the information below.

School districts often consist of several School District
municipalities that may have different levels of
assessment. Each municipality pays its fair share of Town A
the school tax based on its total market value rather Equalization Town B
than its total assessed value. The total market value rate: 50% Equalization
of each municipality is the total assessed value rate: 50%
divided by the municipality’s equalization rate.
Town C
24. The school district shown consists of three towns. Equalization
The total assessed value of each town is $10 million. rate: 100%
Find the total market value of each town.

25. The school district needs to raise $1 million through property tax. Divide the total
market value of each town by the total market value of the entire school district to
find the percent of the $1 million school tax that each town must pay.

26. Find the school tax levy and the school

School tax rate for each town. Assume that the
Town A District taxable assessed value is equal to the total
Town B assessed value for each town.

27. Would it be fair or unfair for each town to pay

one-third of the school tax levy? Explain.

Town C 28. Explain why the school tax rate calculations

would be more difficult for a school district
organized as shown in the diagram at the left.

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234 Chapter 5 The Mathematics of Taxation

5.4 Social Security & Payroll Taxes

Calculate Social Security & Medicare taxes.
Evaluate the benefits of Social Security.
Analyze the viability of Social Security.

Calculating Social Security & Medicare Taxes

Social Security is a social insurance program that is funded through dedicated
payroll taxes. The original Social Security Act of 1935 has been broadened to
include several programs, including the following.

• Old-Age, Survivors, and Disability Insurance

• Unemployment benefits
• Temporary Assistance for Needy Families
• Health Insurance for the Aged and Disabled (Medicare)
• Grants to States for Medical Assistance Programs (Medicaid)
• State Children’s Health Insurance Program (SCHIP)
• Supplemental Security Income (SSI)

Social Security and Medicare Rates

The Social Security and Medicare tax rates for 2010 are as follows.
Social Security Medicare
Employees: 6.2% up to $106,800 1.45% (no salary cap)
Employers: 6.2% up to $106,800 1.45% (no salary cap)
Self-Employed: 12.4% up to $106,800 2.90% (no salary cap)

Calculating Total Payroll Taxes

You live in California and are self-employed. You report a taxable income
Study Tip of $105,000. Estimate your total income tax, including federal, state,
In reality, it is rare to have Social Security, and Medicare. What percent of your taxable income goes
the same taxable income to these four taxes?
for federal, state, Social
Security, and Medicare SOLUTION
taxes. Taxable income is Federal income tax: $ 23,109.25 (See page 212.)
determined by various California income tax: $ 7,737.27 (See page 213.)
deductions, exemptions, Social Security tax: $ 13,020.00 (12.4% of $105,000)
and credits dictated by Medicare tax: $ 3,045.00 (2.9% of $105,000)
the tax code. To keep
calculations simple, the Total: $ 46,911.52
same taxable income is
used for all four taxes in You pay 46,911.52/105,000 ≈ 44.7% of your taxable income to these 4 taxes.
Example 1.
Checkpoint Help at

Rework Example 1 using taxable incomes of (a) $75,000 and (b) $200,000.
Discuss how your percent toward taxes changes as your income changes.

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5.4 Social Security & Payroll Taxes 235

In Example 1, the taxpayer is self-employed and must pay both parts of the
Social Security and Medicare taxes (for both employee and employer). For
people who are not self-employed, the two taxes are shared equally by employee
and employer.

Calculating a Total Compensation Package

You own a business in Massachusetts, which has a flat income tax of 5.3%.
You hire a new employee for $60,000 a year. In addition to this salary, you pay
a 5% matching contribution to a 401(k) retirement plan, $940 a month for the
employee’s health insurance, 1.25% for workers’ compensation insurance, and
$1000 each year for a holiday bonus.
a. What is the total compensation package you are paying for this employee?
b. How much does the employee receive each year as “take-home pay”?

SOLUTION
a. Total compensation package:
$ 60,000.00 Salary
$ 1,000.00 * Holiday bonus
$ 3,050.00 * 401(k) matching 5% of $61,000
$ 11,280.00 * Health insurance 12 months at $940
$ 3,782.00 ** Social Security matching 6.2% of $61,000
$ 884.50 ** Medicare matching 1.45% of $61,000
“What do I get “What do I pay $ 762.50 ** Workers’ compensation 1.25% of $61,000
each month?” each month?” $80,759.00
*Optional employee benefits **Mandated employee benefits
The total compensation package for this employee is $80,759 per year.
b. Take-home pay: Assume the employee is single, does not have any other
taxable income, and claims the standard deduction. The employee must pay
income tax on the $1000 holiday bonus but (currently) not on the 401(k)
match or the health insurance.
Study Tip 401(k) employee portion: $ 3,050.00 5% of $61,000
As you can see, payroll Social Security: $ 3,782.00 6.2% of $61,000
deductions are complex Medicare: $ 884.50 1.45% of $61,000
and require a clear Federal income tax: $ 8,331.25 Taxable income of $48,600
understanding of tax codes.
State income tax: $ 2,838.15 5.3% of $53,550
Many small businesses hire a
Total: $18,885.90
payroll company to prepare
the paychecks and keep track The employee’s take-home pay is 61,000 − 18,885.90 = $42,114.10, which is
of tax codes and deductions. slightly more than half of the total compensation package.
In the calculations at the
right, it was assumed that the
employee had to pay Social Checkpoint Help at
Security and Medicare taxes
on the 401(k) contributions Refer to Example 2. Assume the holiday bonus is paid in 12 monthly installments.
but did not have to pay
c. How much does the employer pay each month?
income tax on the 401(k)
contributions, standard d. How much does the employee receive each month as take-home pay?
deductions, and exemptions. e. How can the difference in these two amounts affect a person’s perspective
as an employee or as an employer?

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236 Chapter 5 The Mathematics of Taxation

Evaluating the Benefits of Social Security

The graph shows the maximum amount of Social Security withholding from
2010.
1978 through 20

Study Tip Maximum Employee Contributions

There are about 54 million for Social Security (1978–2010)
people receiving Social 7000
Security benefits. Of these,
about one-third are under 6000
the age of 65. These

Amount (dollars)
beneficiaries include 5000
dependent spouses and
4000
children and disabled
workers. 3000

2000

1000

0
1978 1982 1986 1990 1994 1998 2002 2006 2010
Year

If you had paid the maximum Social Security tax each year from 1978 through 2010,
both you and your employer would have paid about $124,166, for a total of about
$248,332 toward your retirement benefits.

Evaluating a Social Security Retirement

Suppose you started your career late in life. You worked for 10 years and paid
the maximum employee contribution to Social Security. At age 66 in 2010, you
started to receive a retirement benefit of $1220 per month. Compare the amount
you put into the system with the amount you will receive.

SOLUTION
Over 10 years, you would have paid about $58,000 into the system. Your employer
matched this. If all payments had earned 4% interest each year, the total would
have grown to about $140,000. The life expectancy of a 66-year-old is about
20 years. Over the 20 years, you will receive
Total receipts = 20(12)(1220) = $292,800.
Although this comparison is oversimplified, you can still see that the two amounts
are very different. In other words, the government will pay you much more than
you paid it.

Checkpoint Help at

People often say, “If I could invest my Social Security tax into a private
retirement system, I could end up with a better retirement than the retirement
I will receive from Social Security.” Analyze this statement. Is it true for all
workers? Is it true for any workers?

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5.4 Social Security & Payroll Taxes 237

The age for full retirement benefits used to be 65. That was gradually changed so that
now anyone born after 1960 must be 67 years old to receive full retirement benefits.
At ages less than 67, the retiree would receive only partial retirement benefits.

Considering Retirement?
Sup
Suppose that you are 62 years old and are considering whether to retire with partial
Social Security benefits or wait until you are 67 years old to receive full benefits.
Soc

• At age 62, you will receive 75% of $1800 per month.

• At age 67, you will receive 100% of $1900 per month.
How long would you have to live to make waiting for full benefits more
economical? Assume a 3% cost-of-living increase each year.

SOLUTION
SO
Social Security numbers Use a spreadsheet to analyze this question.
are used to track workers’
1.03*(1350) 1.03*(1900)
earnings over their lifetimes
to pay benefits. A B C D E
1 Age Retire Early Total Income Wait Until 67 Total Income
2 62 $1,350.00 $16,200.00 $0.00 $0.00
3 63 $1,390.50 $32,886.00 $0.00 $0.00
4 64 $1,432.22 $50,072.64 $0.00 $0.00
5 65 $1,475.19 $67,774.92 $0.00 $0.00
6 66 $1,519.45 $86,008.32 $0.00 $0.00
7 67 $1,565.03 $104,788.68 $1,900.00 $22,800.00
8 68 $1,611.98 $124,132.44 $1,957.00 $46,284.00
9 69 $1,660.34 $144,056.52 $2,015.71 $70,472.52
10 70 $1,710.15 $164,578.32 $2,076.18 $95,386.68
11 71 $1,761.45 $185,715.72 $2,138.47 $121,048.32
12 72 $1,814.29 $207,487.20 $2,202.62 $147,479.76
13 73 $1,868.72 $229,911.84 $2,268.70 $174,704.16
14 74 $1,924.78 $253,009.20 $2,336.76 $202,745.28
15 75 $1,982.52 $276,799.44 $2,406.86 $231,627.60
16 76 $2,042.00 $301,303.44 $2,479.07 $261,376.44
17 77 $2,103.26 $326,542.56 $2,553.44 $292,017.72
18 78 $2,166.36 $352,538.88 $2,630.04 $323,578.20
19 79 $2,231.35 $379,315.08 $2,708.94 $356,085.48
20 80 $2,298.29 $406,894.56 $2,790.21 $389,568.00
21 81 $2,367.24 $435,301.44 $2,873.92 $424,055.04
22 82 $2.438.26 $464,560.56 $2,960.14 $459,576.72
23 83 $2,511.41 $494,697.48 $3,048.94 $496,164.00

If you live past age 83, you will have received less total retirement income by retiring
early. On the other hand, you will have had five additional years of retirement.

Checkpoint Help at

Make a double bar graph showing columns C and E. Explain what the graph
is showing.
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238 Chapter 5 The Mathematics of Taxation

Analyzing the Viability of Social Security

The economic dependency ratio is a measure of the portion of a population that
is composed of dependents (too young or too old to work).

Study Tip
Economic Dependency Ratio
The definition of economic
dependency ratio varies. The economic dependency ratio is the number of people below age 20 or
Some writers use a lower above age 64 divided by the number of people aged 20 to 64.
age limit of 16, which
(people 0–19) + (people 65+)
makes the ratio smaller. Economic dependency ratio = ———
When comparing ratios people 20–64
from different sources, be
sure that the definitions A rising economic dependency ratio is a concern in many countries facing an
are the same.
aging population, because it becomes difficult for pension and social security
systems to provide for a significantly older, nonworking population.

Analyzing a Graph
The graph shows the estimated and projected economic dependency ratios in the
United States from 1950 through 2080. Discuss the changes in the ratio.

Dependency Ratios
100
Per 100 persons of working age

Baby
90
boomers
80 retire
70 Economic
60 dependency
ratio
50
40 All dependents
Age 0–19
30 Age 65+
20
10
Estimates: 1950–2005
Projections: 2006–2080
0
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080
Year

SOLUTION
Thomas Jefferson believed that it From 1950 to 1965, the ratio increased. Then, due to a decreasing birth rate, the
was the duty of each individual to ratio decreased for many years. Shortly after 2010, the ratio began another period
give to those in need. He thought of significant increase as baby boomers (people born in the 20 years following
it was more effective to give entire World War II) began to retire. By 2030, the United States should have an economic
contributions to local organizations dependency ratio of 80, a level it has not had since 1980.
than to divide the contributions
among various organizations Checkpoint Help at
throughout the country.
The graph above generates a basic political philosophy question. That is, in a
group, whose responsibility is it to take care of the people who cannot take care
of themselves? Explain how different political parties have different answers to
this question. What do you think?
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5.4 Social Security & Payroll Taxes 239

The Social Security Board of Trustees has warned that the long-term prospects for
the Social Security system are not good. If action is not taken, the Social Security
system will only be able to make partial payments in 2037.

Looking into the Future

Explain why the following demographics pose problems for Social Security.
a. Life expectancy: Life expectancy is increasing. In 1940, a 65-year-old
man could expect to live another 12 years. In 2010, it was 16 years, and
by 2040 it will be 18 years.
b. Birth rate: The birth rate is falling faster than expected, from 23.7 births
per 1000 people in 1960 to just 13.5 births per 1000 people in 2009.
c. Elderly population: The elderly portion of the population is expected to
rise from 13% in 2010 to 20% by 2050, increasing the number of retirees
from 40 million to 88 million.
d. Working-age population: The smaller working-age population and larger
elderly population means that while there were 6 workers for each retiree
in 1960 and 5 workers for each retiree in 2010, by 2030 there will be just
3 workers to pay the taxes for the benefits of each retiree.

SOLUTION
a. Life expectancy: Longer life expectancy means that people will receive
retirement payments from the system for a longer period of time. To help
correct this problem, the age for full retirement benefits was raised from
65 to 67.
b. Birth rate: For any country, births are the source of future workers and
future taxpayers. When birth rates decline, this source diminishes.
c. Elderly population: The elderly account for the bulk of the Social Security
system’s expenses. An increase in the percent of elderly people puts a further
strain on the system. Over the next 20 years, nearly 80 million baby boomers
will become eligible for Social Security.
d. Working-age population: Unlike most private retirement funds, Social
Security is a “pay as you go” system. The taxes paid by working people
are used to pay current Social Security benefits. As the percent of working
people declines, the amount of tax that each worker pays will have to increase,
or the amount that is paid out will have to decrease.

When the Social Security Act Checkpoint Help at

was signed by President
Franklin D. Roosevelt in 1935, the Each year, the federal government determines a cost-of-living adjustment (COLA)
United States was in the midst of for recipients of Social Security benefits. Here are a few recent COLA rates.
the Great Depression. To publicize
2005: 4.1% 2006: 3.3% 2007: 2.3%
the new program and its benefits,
the Social Security Board began 2008: 5.8% 2009: 0% 2010: 0%
an advertising campaign About $713 billion in Social Security benefits were distributed in 2010.
called “More Security for How much does a COLA rate of 1% cost the federal government in increased
the American Family.” Social Security benefits? Discuss the consequences of your answer.

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240 Chapter 5 The Mathematics of Taxation

5.4 Exercises
Form W-2 John Doe works for Company A. In Exercises 1–6, use the incomplete W-2 shown. (See Examples 1 and 2.)

123-00-4567

12-3456789 36,127.65 3,597.90

Company A 37,245.00
14 Corporate Drive 37,245.00
Anytown, CO 01234

01-234
D 1,117.35
John R. Doe
213 Pearl Street X
Anytown, CO 01234

CO 0123-4567 36,127.65 37,245.00 372.45

1. Box 3 on the W-2 shows the taxable income for Social Security. Box 4
should show the amount of Social Security tax withheld. What
amount should be in box 4?

2. Box 5 on the W-2 shows the taxable income for Medicare.

Box 6 should show the amount of Medicare tax withheld.
What amount should be in box 6?

3. Box 16 on the W-2 shows the taxable income for Colorado.

Box 17 should show the amount of state income tax withheld.
Colorado has a flat income tax of 4.63%. What amount should be in box 17?

4. John Doe contributes 3% of his salary to a 401(k) retirement plan. This amount is shown in box 12a.
How much is John Doe’s salary in 2010?

5. What percent of John Doe’s salary should be withheld to pay federal, Social Security, Medicare, state,
and local taxes?

6. In addition to John Doe’s salary, Company A pays a 3% matching contribution to a 401(k) retirement
plan and $560 a month for John Doe’s health insurance.
a. What is the total compensation package Company A is paying for John Doe? (Note: Worker’s
Compensation Insurance and Unemployment Insurance are not included for simplicity.)
b. How much does John Doe receive each year as “take-home pay”?

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5.4 Social Security & Payroll Taxes 241

Social Security Benefit Formula In Exercises 7–10, use the information below. (See Examples 3 and 4.)
Social Security benefits are based upon lifetime earnings
and retirement age. The formula shown is applied to a 2010 Social Security Benefit Formula
worker’s average indexed monthly earnings (AIME) to 1. Multiply the first $761 of
arrive at the basic benefit, or primary insurance amount the AIME by 90%. $__________
(PIA). This is how much the worker will receive each
month after reaching full retirement age. Multiply this 2. Multiply the AIME over
amount by 75% to find the estimated monthly retirement $761 and less than or equal
benefit at age 62. to $4586 by 32%. $__________
3. Multiply the AIME over
7. A worker’s AIME is $3800. Estimate the worker’s PIA $4586 by 15%. $__________
at full retirement age.
4. Add 1, 2, and 3. Round down
to the next lowest dollar. This
8. A worker’s AIME is $6200. Estimate the worker’s PIA is your estimated monthly
at full retirement age. retirement benefit. $__________

9. A worker’s AIME is $4500. Estimate the worker’s PIA

at age 62.

10. What do you think your AIME will be when you retire? Estimate how much you will receive
each month from Social Security at full retirement age. (Neglect inflation.)

Retirement In Exercises 11 and 12, use the information below taken from a worker’s annual
R
Social Security Statement. Assume a 3% cost-of-living increase each year. (See Example 4.)
S

Your Estimated Benefits

*Retirement You have earned enough credits to qualify for benefits. At your current earnings rate, if you continue
working until...
your full retirement age (66 years), your payment would be about . . . . . . . . . . . $ 2,029 a month
age 70, your payment would be about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,678 a month
If you stop working and start receiving benefits at...
age 62, your payment would be about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,530 a month
*Disability You have earned enough credits to qualify for benefits. If you become disabled right now...

Your payment would be about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,067 a month

*Family If you get retirement or disability benefits, your spouse and children also may qualify for benefits.
*Survivors You have earned enough credits for your family to receive survivors benefits. If you die this year,
certain members of your family may qualify for the following benefits:
Your child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,550 a month
Your spouse who is caring for your child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,550 a month
Your spouse who reaches full retirement age . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,067 a month
Total family benefits cannot be more than . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,617 a month
Your spouse or minor child may be eligible for a special one-time death benefit of $255.
Medicare You have earned enough credits to qualify for Medicare at age 65. Even if you do not retire at age 65, be sure to
contact Social Security three months before your 65th birthday to enroll in Medicare.

11. How long would the worker have to live to make

waiting for full benefits more economical than retiring
at age 62?

12. How long would the worker have to live to make

waiting for the benefits at age 70 more economical
than retiring at age 62?

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242 Chapter 5 The Mathematics of Taxation

Dependency Ratios In Exercises 13–18, use the information and bar graph below
(See Examples 5 and 6.)

The economic dependency ratio is also

called the total dependency ratio which
consists of old-age dependency and youth
dependency, as shown in the bar graph.
When President Franklin D. Roosevelt
signed the Social Security Act in 1935,
the United States had a total dependency
ratio of 74. Of this, 63 was attributed
to youth dependency and 11 to
old-age dependency.

13. Why is the total dependency

ratio projected to increase Dependency Ratios for the United States
from 66 in 2010 to 82 in 2050? (2010–2050)
100
14. Use percent of increase to Old-age dependency Youth dependency
90
describe the change in the
80 82 82
old-age dependency ratio 80
from 2010 to 2030. 35 37 38
71
70 66
27
15. What does the bar graph imply 21
60
about the working-age population
Ratio

from 2010 to 2050? 50

16. What effects do a rising 40 45 44 45 45 44

economic dependency ratio
30
have on a government?
Explain your reasoning. 20

17. The total dependency ratio 10

in 1965 was 95, with a youth

0
dependency of 77 and an 2010 2020 2030 2040 2050
old-age dependency of 18. Year
Would the financial burden Note: Total dependency â ((Population under age 20à Population
aged 65 years and over)/(Population aged 20 to 64 years)) ƀ 100
on the Social Security system
Old-age dependency â (Population aged 65 years and over/Population
be greater in 1965 or 2050? aged 20 to 64 years) ƀ 100
Explain your reasoning. Youth dependency â (Population under age 20/Population
aged 20 to 64 years) ƀ 100

18. Suppose you are a legislator.

How would you propose to fix
the imminent financial challenges
of the Social Security system?

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5.4 Social Security & Payroll Taxes 243

Extending Concepts
Average Indexed Monthly Earnings In Exercises 19–22, use the information below and the table.
A worker’s annual earnings are adjusted, or
“indexed,” to express the earnings in terms of A B C D
today’s wage levels. The 35 greatest indexed Actual
earnings are then averaged to get the average Maximum Earnings Index Indexed
Year
indexed monthly earnings (AIME). Earnings (not more than Factor Earnings
column A)
After working for 35 years, a worker retired
in 2009 at the age of 62. The table shows the 1975 $14,100 $4,000 4.79
worker’s information. 1976 $15,300 $4,145 4.48
1977 $16,500 $4,274 4.23
19. Multiply the amounts in column B by the 1978 $17,700 $7,280 3.92
index factors in column C, and enter the 1979 $22,900 $7,516 3.60
results in column D. 1980 $25,900 $7,742 3.30
1981 $29,700 $8,002 3.00
20. Find the sum of the amounts in column D.
Then divide the sum by 420 (the number of 1982 $32,400 $12,205 2.84
months in 35 years). Round down to the next 1983 $35,700 $12,683 2.71
lowest dollar. This is the worker’s AIME. 1984 $37,800 $13,171 2.56
1985 $39,600 $13,686 2.46
1986 $42,000 $14,107 2.39
1987 $43,800 $14,532 2.24
1988 $45,000 $31,200 2.14
1989 $48,000 $32,218 2.06
1990 $51,300 $33,344 1.97
1991 $53,400 $34,450 1.90
1992 $55,500 $38,545 1.80
1993 $57,600 $39,883 1.79
1994 $60,600 $41,336 1.74
1995 $61,200 $42,801 1.67
1996 $62,700 $44,219 1.60
21. Use the Social Security benefit formula 1997 $65,400 $45,771 1.51
on page 241 to estimate the worker’s 1998 $68,400 $68,400 1.43
Social Security monthly retirement benefit 1999 $72,600 $72,600 1.36
at age 62.
2000 $76,200 $76,200 1.29
22. Explain why the Social Security benefit 2001 $80,400 $80,400 1.26
formula is designed to pay a higher percent 2002 $84,900 $84,900 1.24
for lower AIMEs. 2003 $87,000 $87,000 1.21
2004 $87,900 $87,900 1.16
23. Dependency Ratio What factors may prevent 2005 $90,000 $90,000 1.12
the economic dependency ratio from being
2006 $94,200 $94,200 1.07
100% accurate? Explain your reasoning.
2007 $97,500 $97,500 1.02
24. Viability of Social Security Do you think 2008 $102,000 $102,000 1.00
the Social Security system will exist when 2009 $106,800 $106,800 1.00
you retire? Use the concepts in this section
to defend your answer.

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244 Chapter 5 The Mathematics of Taxation

5.3–5.4 Quiz
Pennsylvania In Exercises 1– 4, use the information and table below.
You own a $90,000 home in Pennsylvania. The assessment level
is 20%. The annual property tax rates on your home are shown. Taxes Tax Rate

1. What is the combined tax rate? County 18.1 mills

2. What is the property tax for your home? Township 2.0 mills

3. What is the effective property tax rate? School 48.0 mills

4. County and township taxes are due by June 30. When paid by
April 30, there is a 3% discount on county taxes and a 2% discount
on township taxes. How much is due when you pay by April 30?

Payroll Taxes In Exercises 5– 7, use the pay stub of a college student

residing in Pennsylvania.

5. Calculate the local and state taxes.

6. Calculate the Social Security and Medicare taxes.

7. What percent of the earnings go to taxes?

8. Retirement A worker’s annual Social Security Statement

indicates that he would receive $1072 per month by retiring at
age 62, or $1938 per month by retiring at age 70. How long
would he have to live to make waiting until age 70 more
economical? Assume a 3% cost-of-living increase each year.

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Chapter 5 Summary 245

Chapter 5 Summary

Section Objectives How does it apply to you?

You can determine what income is taxable and calculate
Calculate a flat income tax.
Section 1

income taxes in states with a flat tax. (See Examples 1 and 2.)

You can identify taxes based on how the tax rate changes as
Identify types of taxes.
income increases. (See Examples 3 and 4.)

You can analyze taxes to determine who pays them and who
Analyze an indirect tax.
benefits from them. (See Examples 5 and 6.)

You can calculate graduated income taxes to compare

Calculate a graduated income tax. the taxes paid for different salaries in different states.
Section 2

(See Examples 1 and 2.)

Analyze a graduated income tax Analyzing tax systems helps you understand the degree to
system. which income level affects taxation. (See Example 3.)

Compare a graduated income tax You can analyze alternative tax systems and determine how
with a flat income tax. they could address the U.S. deficit. (See Examples 5 and 6.)

You can compare property taxes in different cities.

Calculate a property tax.
(See Example 1.)
Section 3

You can use the assessed value of a property to appeal

Analyze assessments and
assessments and calculate property tax credits.
tax credits.
(See Examples 3 and 4.)

Analyze exemptions for You can calculate property tax savings from exemptions.
property tax. (See Example 6.)

Calculate Social Security & You can find how much you and your employer pay for
Section 4

Medicare taxes. various taxes and benefits. (See Examples 1 and 2.)

Evaluate the benefits of You can analyze Social Security benefits to help make
Social Security. retirement decisions. (See Examples 3 and 4.)

Analyze the viability of Social You can analyze Social Security to understand why it may not
Security. be available to you when you retire. (See Examples 5 and 6.)

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246 Chapter 5 The Mathematics of Taxation

Chapter 5 Review Exercises

Section 5.1
Massachusetts State Income Tax Massachusetts has a
flat income tax with a rate of 5.3%. In Exercises 1 and 2,
determine how much state income tax the person owes.
1. A person who lives in Massachusetts has a taxable
income of $45,000.

2. A person who lives in Massachusetts has a taxable

income of $1,000,000.

Massachusetts State and Local Taxes In Exercises 3–6, use the display.

Massachusetts State & Local Taxes Paid by Income Groups

(Nonelderly taxpayers)
Percent of income

6.0

4.0

2.0

0.0
Lowest Second Middle Fourth Next Next Top
20% 20% 20% 20% 15% 4% 1%
Sales & excise taxes 5.0% 3.8% 2.9% 2.3% 1.7% 1.1% 0.5%
Property taxes 4.6% 3.5% 3.4% 3.4% 3.2% 2.4% 1.0%
Income taxes 0.5% 2.9% 3.8% 4.1% 4.3% 4.5% 4.4%

3. The income for a family in the middle 20% is $53,000. How much, in dollars, does this family
pay for each type of tax?

4. The income for a family in the top 1% is $2,600,000. How much, in dollars, does this family pay
for each type of tax?

5. Determine whether the three types of taxes are regressive, flat, or progressive in Massachusetts.

6. Are taxes, as a whole, regressive, flat, or progressive in

Massachusetts? Explain your reasoning.

7. Alcohol Sales Tax Massachusetts had a 6.25% sales tax on alcohol

from August 2009 to December 2010. Part of the revenue from the
tax was used to fund substance abuse programs. This tax was
abolished in December 2010. Do you agree with such a tax?
Why or why not?

8. Effects of a Tax Suppose the revenue from a sales tax on

cigarettes is used to offset the costs of a new health insurance
law. Discuss ways in which the tax might help the people
who are paying the tax.

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Chapter 5 Review Exercises 247

Section 5.2
Arizona State Income Tax In Exercises 9–12, use the table.
A

9. Find the state income tax and the effective 2010 Arizona State Income Tax
tax rate for a taxable income of $18,000. for Single Taxpayers

Taxable Income Marginal Tax Rate

10. Find the state income tax and the effective
tax rate for a taxable income of $45,854. $0–$10,000 2.59%
$10,001–$25,000 2.88%
11. Find the state income tax and the effective $25,001–$50,000 3.36%
tax rate for a taxable income of $75,489.
$50,001–$150,000 4.24%
$150,001+ 4.54%
12. Find the state income tax and the effective
tax rate for a taxable income of $214,500.

Arizona State and Local Tax Revenue In Exercises 13–16, use the bar graph.

Sources of State and Local Tax Revenue

venue
for Arizona in 2008

Motor vehicle license taxes: $243

Other taxes: $734

Corporate income taxes: $785

Source

Individual income taxes: $3409

Property taxes: $6705

Sales taxes: $11,117

0 2000 4000 6000 8000 10,000 12,000
Amount (millions of dollars)

13. What percent of Arizona’s state and local tax revenue comes from individual
income taxes?

14. What percent of Arizona’s state and local tax revenue comes from property taxes?

15. Compare the percents of state and local tax revenue that come from sales taxes
in Arizona and South Carolina (see Exercise 10 on page 219).

16. In 2008, the total personal income in Arizona was about $224 billion. Discuss using
a flat tax to collect the amount of individual income taxes shown in the graph.

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248 Chapter 5 The Mathematics of Taxation

Section 5.3
Property Taxes In Exercises 17–20, use the map.

City of Boise, ID
Tax rate: 7.0 mills
Assessment level: 100%

Adams County, CO
Tax rate: 26.8 mills
Assessment level: 7.96%

Chicot County, AR
Tax rate: 10.0 mills
Assessment level: 20%

City/Borough of Juneau, AK
Tax rate: 10.51 mills
Assessment level: 100%

17. Find the county taxes for a $128,000 home in Chicot County, Arkansas.

18. Find the city taxes for a $240,000 home in Juneau, Alaska.

19. Find the effective property tax rate of city taxes in Boise, Idaho.

20. Find the effective property tax rates of county taxes for Adams County, Colorado,
and Chicot County, Arkansas. Which county has greater taxes?

21. Credit Homeowners in Arkansas can receive a

homestead tax credit up to $350. A home with an
assessed value of $24,000 is subject to a combined
tax rate of 51.8 mills. How much would the
homeowner pay in property taxes assuming he or
she receives the maximum homestead tax credit?

22. Exemption The assessed value of a home in Idaho

is $160,000, and the combined tax rate is 10.5 mills.
The homeowner receives an exemption of 50% of the
assessed value. How much does the homeowner pay
in property taxes?

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Chapter 5 Review Exercises 249

Section 5.4

Social Security In Exercises 23 –30, use the information below.

Retirement Benefits
Joe and Carolyn have been married for 45 years. In 2010, Joe
retired at his full retirement age, 66. During his last year of A person qualifies for Social Security
employment, Joe had an income of $58,000. The Social Security retirement benefits by earning credits
Administration calculates that Joe’s average indexed monthly when he or she works and pays
earnings (AIME) is $3226. Social Security tax. The credits are
based on the amount of a worker’s
23. During his last year of employment, how much should Joe have earnings. In 2011, a worker received
paid in Social Security tax? 1 credit for each $1120 of earnings,
up to the maximum of 4 credits per
24. During his last year of employment, how much should Joe have year. A worker born in 1929 or later
paid in Medicare tax? needs 40 credits (10 years of work)
to be eligible for retirement benefits.
25. Use the Social Security benefit formula on page 241 to estimate
Joe’s primary insurance amount (PIA).

26. Suppose Joe retired at age 62. How long would Joe have to live to make waiting for full
benefits more economical? Assume a 3% cost-of-living increase each year.

27. Carolyn has always been a homemaker and has never paid Social Security tax. Will she
qualify for Social Security retirement benefits? Explain.

28. Use the Internet to research qualifications for survivors benefits through Social Security.
Suppose Joe dies before Carolyn. Will Carolyn qualify for survivors benefits? Explain.

29. How might the economic dependency ratio affect Joe’s retirement benefits in the future?

30. How might the economic dependency ratio affect the qualifications for Social Security
retirement benefits in the future?

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6 The Mathematics of
Borrowing & Saving

6.1 Introduction to Lending

Read promissory notes and find due dates.
Find the cost of credit for a loan.
Find the annual percentage rate for a loan.

6.2 Buying Now, Paying Later

Create an amortization table.
Analyze the cost of buying on credit.
Analyze credit in the United States.

6.3 Home Mortgages

Compare rates and terms for a home mortgage.
Analyze the effect of making principal payments.
Compare the costs of buying and renting.

6.4 Savings & Retirement Plans

Find the balance in a savings account.
Find the balance in an increasing annuity.
Analyze a decreasing annuity.

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Total Interest Paid for Varying Terms
(Principal ä $250,000, APR ä 6%)
$600,000

$500,000

$400,000

Interest $300,000

$200,000

$100,000

$0
5 10 15 20 25 30 35 40 45 50
Term (years)

Example 2 on page 275 compares the amount of interest you pay

on a home mortgage for terms of 20, 30, and 40 years. Does
the interest double when you double the term?

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252 Chapter 6 The Mathematics of Borrowing & Saving

6.1 Introduction to Lending

Read promissory notes and find due dates.
Find the cost of credit for a loan.
Find the annual percentage rate for a loan.

Promissory Notes
At the time you obtain a loan, you are expected to sign a promissory note in
Study Tip which you promise to repay the loan. The term of a loan is the period of time in
Promissory notes are which you repay the loan. The amount actually received in a loan is called the
sometimes simply called loan proceeds, and the total amount the borrower must repay the lender is called
notes. A note that the total payment, or total amount due.
indicates the term of a
loan is a time note. Notes
differ from IOUs in that Reading a Promissory Note
they contain a specific
Find ((a)) the term of the loan and (b)
( ) the total amount due.
promise to pay, rather than
simply acknowledging that
No. 2786 Boise, Idaho, May 10 , 20 11 $ 1240.00
a debt exists. A promissory
note is evidence of a loan, Ninety days after date, the undersigned (jointly and severally if more than
but it is not a loan contract, The Lending Bank
one) promise(s) to pay to the order of
which contains all the terms
and conditions of the loan One thousand two hundred forty and no/100 Dollars
agreement. Payable at The Lending Bank, Boise, Idaho

Each and every party to this instrument, either as maker, endorser, surety, or otherwise,
hereby waives demand, notice, protest, and all other demands and notices and assents
to any extension of the time of payment or any other indulgence, to any substitution,
exchange, or release of collateral and/or to the release of any other party.

Address 174 Maple Avenue Signed

Boise, Idaho

SOLUTION
a. The term is 90 days. b. The total amount due is $1240.
Total amount due

Term
No. 2786 Boise, Idaho, May 10 , 20 11 $ 1240.00
Ninety dda
days after date, the undersigned (jointly and severally if more than
one) promise(s
promise(s)
s) to pay to the order of The Lending Bank
One
One thousand two hundred forty and no/100 Dollars
Payable at
Payabl The Lending Bank, Boise Idaho

Checkpoint
Checkpoin
Ch k i Help at

Promissory notes are negotiable. What does this mean?

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6.1 Introduction to Lending 253

Repayment of a loan can occur in many ways. The most common way to repay a
loan is with monthly payments. This type of loan is called an installment loan.
A detailed discussion of installment loans occurs in Section 6.2.
Another way to repay a loan is with a single payment at the end of the term of
the loan. Common terms for such loans are 30 days, 60 days, 90 days, 6 months,
1 year, and 18 months.

Finding the Due Date and Total Amount Due

You are moving from Dallas to Pittsburgh. You plan to sell your home in Dallas
and use the money as a down payment on a home in Pittsburgh. Your moving date
occurs before your Dallas home sells, so you decide to obtain a 90-day note from
a Pittsburgh bank for $10,000.00. The loan takes place on June 5, and the costs
include $244.27 for interest and $84.00 in other charges. (a) When is the note due?
(b) How much is due at the end of 90 days?

SOLUTION
JUNE
Su M Tu W Th F Sa JULY
1 2 3 4 5 6
Su M Tu W Th F Sa
7 8 9 10 11 12 13 AUGUST
1 2 3 4
14 15 16 17 18 19 20 Su M Tu W Th F Sa
7 6 7 8 9 10 11 SEPTEMBER
S E
21 22 23 24 25 26 27 1
14 13 14 15 16 17 18 Su M Tu W Th F Sa
28 29 30 2 3 4 5 6 7 8
21 20 21 22 23 24 25 1 2 3 4 5
9 10 11 12 13 14 15
28 27 28 29 30 31 6 7 8 9 10 11 12
16 17 18 19 20 21 22
13 14 15 16 17 18 19
23 24 25 26 27 28 29
20 21 22 23 24 25 26
30 31
27 28 29 30

a. The loan occurs on June 5 and is due 90 days from that date.
25 days Days remaining in June
31 days Days in July
31 days Days in August
+ 3 days Days in September
90 days
So the note is due on September 3.
b. The total amount due is
10,000.00 Loan proceeds
244.27 Interest
+ 84.00 Other charges
$10,328.27. Total amount due

Checkpoint Help at

On March 17, you obtain a 120-day note for $5000. The costs include $250.00
for interest and $77.95 in other charges. When is the note due? How much is due
at the end of 120 days?

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254 Chapter 6 The Mathematics of Borrowing & Saving

Cost of Credit
The ability of a person to obtain a loan is called credit. When you obtain a loan,
you are borrowing someone else’s money, and normally you must pay to do so.
The cost of credit for a loan is the difference between the total amount due and
the loan proceeds.

Cost of Credit
Cost of credit = total amount due − loan proceeds

Finding the Cost of Credit

You purchase a refrigerator for $950.89 plus 6% sales tax. The appliance store
offers an installment loan that allows you to pay for the refrigerator by making
12 equal monthly payments of $95.75. What is the cost of credit for this loan?

SOLUTION
Because the loan has 12 equal monthly payments of $95.75, the total amount
due is
Total amount due = 12(95.75) 12 monthly payments
= $1149.00.
The loan proceeds are found by adding the cost of the refrigerator to the
6% sales tax.
Cost of Sales
Loan proceeds = +
refrigerator tax

= 950.89 + (0.06)(950.89) 6% sales tax

= 950.89 + 57.05
= $1007.94
Finally, the cost of credit for this loan is
Cost of credit = total amount due − loan proceeds
= 1149.00 − 1007.94
= $141.06.
So, by borrowing the money, you pay $141.06 more than if you had paid cash for
the refrigerator.

Checkpoint Help at

What is the cost of credit for each loan?

a. You buy a computer for $1599.99 plus 7% sales tax. The electronics store
offers an installment loan that allows you to pay for the computer by making
24 equal monthly payments of $74.20.
b. You borrow $250,000 with a home mortgage. You pay $1342.05 toward the
mortgage each month for 30 years.

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6.1 Introduction to Lending 255

The federal government requires lending institutions to disclose several pertinent

facts about a loan. The disclosure helps the borrower understand the contractual
obligations of the loan. These facts must be disclosed in writing, before the
borrower is asked to sign the promissory note. This requirement is specified in the
Truth in Lending Act.
The Truth in Lending Act requires lending institutions to classify the cost of
credit of every loan into two categories.

1. Finance charges such as interest, carrying charges, and service charges

2. Other charges such as insurance premiums, investigation of credit fees, and
filing fees

Although the other charges may be paid at the time of the loan, they are often
incorporated into the loan. Together with the loan proceeds, they make up the
amount financed, or the principal.

Applying the Truth in Lending Act

You buy a washer and dryer for $1395.00 plus $83.70 in sales tax. You
pay $100.70 down and finance the remainder. There is an insurance charge
of $60.95 and a finance charge of $122.97. Complete the Truth in Lending
disclosure for this loan.

Loan Proceeds $ Annual Percentage Rate â 8

Other Charges à $
Amount Financed $ Payable in 24 payments
Finance Charge à $ of $ 65.08 each.
Total Amount Due $

SOLUTION

Insurance 1395.00 à 83.70 Ź 100.70

Loan P
Proceeds
Pr $ 1378.00 Annual Percentage Rate â 8 %
Other C
Charges à $ 60.95
Amount
Amou
un Financed $ 1438.95 Payable in 24 payments
Finance Charge à $ 122.97 of $ 65.08 each.
Total Amount Due $ 1561.92

Checkpoint Help at

You borrow $2000. There is an insurance charge of $89.73. The annual percentage
rate is 10%. You make monthly payments of $67.43 for 36 months. Complete a
Truth in Lending disclosure for this loan.

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256 Chapter 6 The Mathematics of Borrowing & Saving

Annual Percentage Rate

Interest that is calculated only on the principal is simple interest. The rate
at which this interest is calculated is the annual percentage rate (APR).
Interest that is calculated on both the principal and accumulated interest is
called compound interest, which is discussed in Section 6.2.

Study Tip Simple Interest Formula (I = Prt)

When a term is given in days,
⋅ ⋅
Interest Principal Annual percentage Time
you can convert it to years by = ($)
($) rate (in decimal form) (yr)
dividing by 365. For example,
60
60 days = — year.
I = P ⋅ r ⋅ t
365

Finding Simple Interest

Complete the table showing the interest on $1000 for various terms and rates.
C

r 4% 8% 12% 16% 20% 24%

t
60 days
120 days
180 days
240 days
300 days
1 year

SOLUTION
S
Use a spreadsheet for this type of repetitive calculation.
U

A B C D E F G
1 Rate
2 Days 4% 8% 12% 16% 20% 24%
3 60 $6.58 $13.15 $19.73 $26.30 $32.88 $39.45
4 120 $13.15 $26.30 $39.45 $52.60 $65.75 $78.90
5 180 $19.73 $39.45 $59.18 $78.90 $98.63 $118.36
I â Prt 6 240 $26.30 $52.60 $78.90 $105.21 $131.51 $157.81
60
â 1000(0.04) ( 365 ) 7 300 $32.88 $65.75 $98.63 $131.51 $164.38 $197.26
â $6.58
8 365 $40.00 $80.00 $120.00 $160.00 $200.00 $240.00
9

Checkpoint Help at

Complete another row in the table for a term of 90 days.

Copyright © Larson Texts, Inc. All rights reserved.

6.1 Introduction to Lending 257

When using the simple interest formula, I = Prt, the value of any one of the
variables can be unknown. As long as you know the values of three of the variables,
you can calculate the value of the fourth variable.

Simple Interest: Related Formulas

Find interest. Find principal. Find rate. Find time.
I I I
I = Prt P=— r=— t=—
rt Pt Pr

.and .com
You can access a simple interest calculator at [Link].

Finding the Annual Percentage Rate

Using an ATM, you take a cash advance of $500. The service charge is
$3.50. After 45 days, you repay the advance. When you get your credit card
statement, you notice that the interest for the “loan” is $17.26. (a) For the
interest alone, what is the annual percentage rate? (b) When you add the
service charge to the interest, what is the annual percentage rate?

SOLUTION
a. Because you are finding the rate, use the third formula in the table above.
I
r=—
Pt
17.26 45
=— I = $17.26, P = $500, t = —
500 —( )
45
365
365

≈ 0.28
The annual percentage rate is about 28%.

b. Add the service charge to the stated interest to get I = $20.76.

$20 76
I
Study Tip r=—
Pt
APR is also called nominal
20.76 45
APR. The APR found in =— I = $20.76, P = $500, t = —
Example 6(b) is called the
effective APR, which
500 —( )
45
365
365

includes other charges ≈ 0.337

incurred from the loan.
The annual percentage rate is about 33.7%.

Checkpoint Help at

You borrow $100 from a friend. You repay the loan in 3 weeks and agree to pay
$10 for interest. What is the annual percentage rate for this loan?

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258 Chapter 6 The Mathematics of Borrowing & Saving

6.1 Exercises
Promissory Notes In Exercises 1 and 2, find (a) the term of the loan and (b) the total amount due.
(See Example 1.)
1. 2.
Promissory Note
The undersigned, Alex Lima (the “Borrower”), Date 1 March 2012 Amount $11,000
hereby acknowledges himself indebted to Jada
Moore (the “Lender”) and promises to pay to the
Lender at 993 Pine Avenue, Bar Harbor, Maine, In 90 days , we promise to pay against this Promissory Note
the amount of $1900.
the sum of Eleven thousand dollars
This amount shall be due 2 years following the
date of this note. to the order of The Augusta Loan Center .

Payable at: For and on behalf of:

Borrower Date
The Augusta Loan Center Beach Glass Jewelers
444 Pigeon Hill Road
Augusta, ME 04330
Lender Date
Owner

Due Dates In Exercises 3–5, use the 2012 calendar. (See Example 2.)

January March
February S M T W T F S
S M T W T F S
1 2 3
1 2 3 4 5 6 7 S M T W T F S
4 5 6 7 8 9 10
8 9 10 11 12 13 14 1 2 3 4
11 12 13 14 15 16 17
15 16 17 18 19 20 21 5 6 7 8 9 10 11 June
18 19 20 21 22 23 24
22 23 24 25 26 27 28 12 13 14 15 16 17 18 May
255 26 27 28 29 30 31 S M T W T F S
29 30 31 19 20 21 22 23 24 25
April S M T W T F S 1 2
26 27 28 29
S M T W T F S 1 2 3 4 5 3 4 5 6 7 8 9
1 2 3 4 5 6 7 6 7 8 9 10 11 12 10 11 12 13 14 15 16
8 9 10 11 12 13 14 13 14 15 16 17 18 19 17 18 19 20 21 22 23
15 16 17 18 19 20 21 20 21 22 23 24 25 26 24 25 26 27 28 29 30
22 23 24 25 26 27 28 27 28 29 30 31
29 30

3. When is the note in Exercise 2 due?

4. On April 19, you obtain a 60-day note for $5000. The costs include $81.37 for
interest and a $50.99 service charge. When is the note due? How much is due at
the end of 60 days?

5. You obtain a 120-day note for $20,000 to use as a down payment on a home. The
loan takes place on January 19. The costs include $789.04 for interest and $134
in other charges. When is the note due? How much is due at the end of 120 days?

6. Leap Year On January 19, 2013, you obtain a 120-day note. Is the due date on the
same day of the year as in Exercise 5? Explain. (See Example 2.)

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6.1 Introduction to Lending 259

Lobstering A fisherman makes purchases for a lobster trapping business. In Exercises 7–9,
find the cost of credit for the loan. (See Example 3.)
7. The fisherman purchases lobster buoys and paint online for $500. The website offers an
installment loan that allows him to pay by making 3 equal monthly payments of $172.25.

8. The fisherman purchases lobster traps online

for $1440. The website offers an installment
loan that allows him to pay by making
12 equal monthly payments of $127.94.

9. The fisherman purchases a lobster boat for

$250,000 plus 5% sales tax. The seller offers
an installment loan that allows him to pay by
making 60 equal monthly payments of $4988.75.

10. Cost of Credit Can you find the cost of credit

for the loan in Exercise 1? Exercise 2? Explain.
(See Example 3.)

Infrastructure Improvements In Exercises 11 and 12, complete

the Truth in Lending disclosure for the loan. (See Example
xample 4.)
11. The fisherman pays a contractor to repair his dock. The
charges are $1200 for lumber, $60 for sales tax, andd
$750 for labor. The fisherman pays $260 down and d
finances the remainder. There is a finance charge off $41.06.

Loan Proceeds $ Ratte â

Annuall Percentage Rate 8
Other Charges à $
Amount Financed $ Payable in 6 payments
Finance Charge à $ of $ 298.51 each.
Total Amount Due $

12. The fisherman borrows $4500 to put a new roof on his shop. The other
charges are $160. The annual percentage rate is 6%.

Loan Proceeds $ Annual Percentage Rate â

Other Charges à $
Amount Financed $ Payable in 12 payments
Finance Charge à $ of $ 401.07 each.
Total Amount Due $

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260 Chapter 6 The Mathematics of Borrowing & Saving

Pawn Shop In Exercises 13–16, a pawn shop

charges simple interest at an annual percentage
rate of 40%. (See Example 5.)
13. Complete the table showing the interest
for various terms and principals.

t P $100 $400 $1000

30 days
60 days
180 days
1 year

14. You pawn a gold ring and receive a 120-day

loan for $500. What is the interest for the loan?
Pawn shops buy and sell merchandise. They also offer loans,
15. You pawn a television and receive a 30-day using personal belongings as collateral. For example, a pawn
loan for 40% of the $500 resale value. What shop may offer an individual a loan of $600 in exchange for
is the interest for the loan? an antique with a resale value of $1000. This is referred to as
pawning an item. The individual recovers the antique when
16. You pawn a motorcycle and receive a 180-day the loan is paid in full.
loan for 60% of the $2000 resale value. What
is the total amount due?

Service Charges A pawn shop includes a service charge according to the table.
In Exercises 17–19, find (a) the annual percentage rate for only the interest and
(b) the annual percentage rate including the service charge. (See Example 6.)

Principal Under $100 $100.01–$500 Over $500

Service charge $4 $7 $10

17. You pay $5.59 in interest on a 60-day loan for $85.

18. You pay $336 in interest on a 1-year loan for $700.

19. You pay $10.48 in interest on a 45-day loan for $340.

20. Reimbursement When you do not make your payments and your pawned item sells,
you may be entitled to the difference of the selling price and the total amount due.
(The total amount due includes expenses incurred by the pawn shop to sell the item.)

a. You do not repay the loan in Exercise 16, and the pawn shop incurs $60 in
expenses to sell the motorcycle. Find the sum of the total amount due and the
expenses incurred to sell the motorcycle.

b. The motorcycle sells for $1700. How much money should you receive?

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6.1 Introduction to Lending 261

Extending Concepts
Ordinary Interest In Exercises 21–24, use the information below.
You borrow $4200 from a relative on January 5, 2012, to buy
solar panels for your roof and windows with insulated glazing.
The annual percentage rate is 8.9%. You agree to repay the loan
on May 25, 2012.

21. Simple interest based on a 360-day year in which each month has
30 days is called ordinary simple interest. When using ordinary
simple interest, you can use the formula below to find the number
of days in a term from a month M, day D, and year Y to a later
month m, day d, and year y. (Note: January = 1, February = 2, etc.)
Number of days = 360(y − Y ) + 30(m − M) + (d − D)

a. Use the formula to find the number of days in the term.

b. Find the total amount due using ordinary simple interest. Low-emissivity (Low-E) glazing on windows
helps control heat transfer. These windows may
22. What is the actual number of days in the term? Find the total cost 10%–15% more than traditional windows,
amount due using exact simple interest, as on page 256. but can reduce energy loss by 30%–50%.

23. Which type of interest costs you more money? Will this
always be true? Explain.

24. Do you think it is appropriate to use ordinary simple interest as an

approximation of exact simple interest? Explain.

25. Banker’s Rule The Banker’s Rule is another type of simple interest
that is similar to ordinary simple interest. It is based on a 360-day year,
but you use the actual number of days in the term when calculating
interest. Does this benefit the lender or the borrower? Explain.

26. Loan Options You have 3 loan options for borrowing $2500.
You will
w repay the simple interest loan in 180 days.

Insurance Annual Service

premium percentage rate charge

Loan A
Lo 2% of loan proceeds 25% $39.50

Loan B
Lo 3% of loan proceeds 26% $0

Loan C
Lo $0 25% $65.00

a. Find the interest for each loan.

b. Find the annual percentage rate of each loan, including
the service charge.
c. Find the total amount due for each loan.
d. Which loan would you choose? Explain.

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262 Chapter 6 The Mathematics of Borrowing & Saving

6.2 Buying Now, Paying Later

Create an amortization table.
Analyze the cost of buying on credit.
Analyze credit in the United States.

Compound Interest Payments

Interest that is calculated on both the principal and accumulated interest is
compound interest. Compound interest is applied to the vast majority of loans.

Monthly Payment for Installment Loans

The monthly payment M for an installment loan with a principal of P taken
out for n months at an annual percentage rate of r (in decimal form) is

( ))
r/12
M = P ——n .
(
1− —
1
1 + (r
(r/12)
r/12)

Study Tip
.and .com
To amortize means to
decrease an amount You can access a monthly payment calculator at [Link].
gradually or in installments.
The schedule of payments
for an installment loan is
called an amortization table. Creating an Amortization Table
You borrow $1200 for 6 months. The annual percentage rate is 6%.
Wha is the monthly payment?
a. What
Crea an amortization table showing how the balance of the loan decreases.
b. Create

SOLUTION
SOL 0.06/12

[ ]
0.005
—
a. M = 1200 1 6 = $203.51
( )
1− —
1.005
b.

A B C D E
Payment Balance before Monthly Monthly
P Balance after
1 N Number Payment Interest Payment Payment
2 1 $1,200.00 $6.00 $203.51 $1,002.49
3 2 $1,002.49 $5.01 $203.51 $803.98
0.005(1200)
0.005(1
4 3 $803.98 $4.02 $203.51 $604.49
5 4 $604.49 $3.02 $203.51 $404.00
6 5 $404.00 $2.02 $203.51 $202.50
7 6 $202.50 $1.01 $203.51 $0.00
8
Checkpoint
Chec Help at

What is the cost of credit for the loan above? Does the cost of credit double when
the term doubles? Explain your reasoning.
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6.2 Buying Now, Paying Later 263

In the initial
init repayment of a lengthy installment loan, most of the monthly
payment ggoes toward interest, not principal. This is illustrated in Example 2.

Using an Amortization Table

Yo take out a $25,000 loan for a new car. The term is 5 years, and the
You
annual percentage rate is 8%. In 30 months, is the remaining balance
an
one-half of the original loan amount?
on

SOLUTION
SO
C
Create an amortization table for the loan. Notice that after 30 payments (out
oof 660), the remaining balance is not one-half of the original loan amount.

A B C D E
Pa
Payment Balance before Monthly Monthly Balance after
1 Number
Nu Payment Interest Payment Payment
2 1 $25,000.00 $166.67 $506.91 $24,659.76
3 2 $24,659.76 $164.40 $506.91 $24,317.25
4 3 $24,317.25 $162.11 $506.91 $23,972.45
6
5 4 $506 91
30 29 $14,564.11 $97.09 $506.91 $14,154.29
31 30 $14,154.29 $94.36 $506.91 $13,741.74
32 31 $13,741.74 $91.61 $506.91 $13,326.44
$506 91
59 58 $1,500.68 $10.00 $506.91 $1,003.77
60 59 $1,003.77 $6.69 $506.91 $503.55
61 60 $503.55 $3.36 $506.91 $0.00
62
63

Decreasing Balance on $25,000 Loan

$25,000
Balance is
Balance after payment

$20,000 $13,741.74 after

30 payments

$15,000

$10,000

$5,000

$0
0 5 10 15 20 25 30 35 40 45 50 55 60
Payment

Checkpoint Help at

a. You make all 60 payments on time. How much interest do you pay?
b. How much interest do you pay when the annual percentage rate is 9%? 10%?

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264 Chapter 6 The Mathematics of Borrowing & Saving

The Co
Cost of Buying on Credit

Finding the Cost of Buying on Credit

You use a credit card to purchase a plasma television for $2500. The
credit card company sends you a monthly bill, asking for a minimum
payment of 3% of the balance or $25, whichever is greater. The annual
percentage rate for the unpaid balance is 28%. How long does it take to
pay for the television by making only minimum payments? How much
interest do you pay?

SOLUTION
The spreadsheet illustrates why you should make more than the
minimum payment each month.
m

A B C D E
Payment Balance before Minimum
Pa Balance after
1 Number
N Payment Payment Interest Payment
2 1 $2,500.00 $75.00 $58.33 $2,483.33
3 2 $2,483.33 $74.50 $57.94 $2,466.78
4 3 $2,466.78 $74.00 $57.56 $2,450.33
5
228 227 $81.93 $25.00 $1.91 $58.84
229 228 $58.84 $25.00 $1.37 $35.21
230 229 $35.21 $25.00 $0.82 $11.03
231 230 $11.03 $11.29 $0.26 $0.00
232 Total $9,130.26

Balance of Credit Card Loan

$2,500
Study Tip
Balance after payment

Credit card companies $2,000

Minimum payment
often offer a limited time switches from 3% to
0% APR for new customers. $1,500
$25 at payment 166
However, this rate usually
reverts to the standard $1,000
APR when you are late with
a payment. So, when you $500
accept this type of card, be
sure you pay at least the
$0
minimum payment on 0 23 46 69 92 115 138 161 184 207 230
time each month. Payment

This repayment plan takes 230 payments, or 19 years and 2 months. During this
time, you pay 9130.26 − 2500.00 = $6630.26 in interest.

Checkpoint Help at

Suppose you make a payment of $75 each month.

a. How long does it take to repay the loan?
b. How much interest do you pay?
Copyright © Larson Texts, Inc. All rights reserved.
6.2 Buying Now, Paying Later 265

When you apply for a credit card or any other

type of loan, the lending institution will check
your credit score. Your credit score is a number
from 300 to 850. The higher your score, the
better your credit rating.
The two most important things in determining
your credit score are (1) your past history of
making payments on time and (2) your total
indebtedness.

Factors Used to Determine Credit Score

Length of credit history: 15%

Payment
history:
35%

Amounts New credit: 10%

owed:
30%
Types of credit used: 10%

Comparing Rates

Y apply for a small business loan for $30,000 for 6 years. If your credit score
You
is 800 or greater, then the annual percentage rate is 6%. If your score is less than
800, then the rate is 8%. How much can you save in interest by having a credit
80
score of 800 or greater?
sc

SOLUTION
S
6% for 72 months: 8% for 72 months:

[ ] [ ]
0.005 0.00667
—— ——
M = 30,000 M = 30,000
( )
1− —
1 72
1.005 (
1− —
1
1.00667
72
)
= $497.19 = $526

After 72 payments, you will have After 72 payments, you will have
paid 72(497.19) = $35,797.68, paid 72(526) = $37,872, of which
of which $5797.68 is interest. $7872 is interest.

So, if your credit score is 800 or greater, you can save more than $2000 in interest
So
on this loan.

Checkpoint Help at

Y apply for a debt consolidation loan for $40,000 for 5 years. If your credit score
You
is 760 or greater, then the APR is 5%. If your score is less than 760, then the rate is
8%. How much can you save in interest by having a credit score of 760 or greater?
8%

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266 Chapter 6 The Mathematics of Borrowing & Saving

Analyzing Credit in the United States

The prime interest rate, or prime lending rate, is the rate that banks charge
their most creditworthy customers.

Study Tip Prime Interest Rate (1956–2011)

011)
The Federal Reserve System, 24%
or simply “The Fed,” is the

Balance after payment

central banking system of 20%
the United States. It was
16%
created in 1913 by the
Federal Reserve Act. Its 12%
duties are to conduct the
nation’s monetary policy, 8%
supervise and regulate
banking institutions, 4%
maintain financial stability,
0%
and provide financial 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011
services to depository
Year
institutions.

Tracking the Prime Interest Rate

Use the graph above to discuss why interest rates increase and decrease.

SOLUTION
Here are three factors that cause interest rates to fluctuate.
1. Supply and Demand of Funds: If the demand for borrowing is higher than
the funds that banks have available, then the rates increase. If the demand for
borrowing is lower than the available funds, then the rates decrease.
2. Monetary Policy: Sometimes the federal government “loosens monetary
policy” by printing more money. This causes interest rates to decrease
because more money is available to lenders.
3. Inflation: Investors want to preserve the buying power of their money. When
the inflation rate is high, investors need a higher interest rate to consider
lending their money.

Checkpoint Help at

Which of the following has had the greatest impact on the prime interest rate?
a. Political party of the president: 1961–1968 (D), 1969–1976 (R),
1977–1980 (D), 1981–1992 (R), 1993–2000 (D), 2001–2008 (R)
Alan Greenspan is an American b. Country at war: Vietnam War (1965–1973), Persian Gulf War (1990–1991),
economist who served as chairman Iraq War (2003–2010)
of the Federal Reserve from 1987 c. Inflation rate: See page 162.
to 2006.
Justify your reasoning in words and graphically.

Copyright © Larson Texts, Inc. All rights reserved.

6.2 Buying Now, Paying Later 267

Comparing Two Levels of Indebtedness

The graph shows the total consumer indebtedness of households in the
United States from 1952 through 2008. Was the typical household more
in debt in 2008 than in 1952? Explain your reasoning.

Total Consumer Credit in the United States (1952–2008)

3,000
$2561 billion

Amount (billions of dollars)

2,500

2,000
Illustration © SEPS licensed by Curtis Licensing, Indianapolis, IN. All rights reserved.

1,500

1,000

500 $30 billion

0
1952 1960 1968 1976 1984 1992 2000 2008
Year

SOLUTION
At first glance, the answer looks obvious. However, there are two things you
need to consider before reaching a conclusion. First, you need to account for
the increase in population. Second, you need to account for inflation.
Fi
Financing
i ththe A
American
i D
Dream:
A Cultural History of Consumer Year Total Indebtedness Number of Households CPI
Credit by Lendol Calder 1952 $30 billion 46 million 26.5
“Once there was a golden age 2008 $2561 billion 117 million 215.3
of American thrift, when citizens
lived sensibly within their means In 1952, the average indebtedness per household was about $700. In 2008, the
and worked hard to stay out of average indebtedness per household was about $21,900.
debt. The growing availability of So, the average indebtedness per household increased by a factor of about 31.
credit in this century, however, During the same time, the CPI increased by a factor of only about 8.
has brought those days to an
end—undermining traditional So, you can conclude that the typical American household was more in debt
moral virtues such as prudence, in 2008 than in 1952.
diligence, and the delay of
gratification while encouraging Checkpoint Help at
reckless consumerism. Or so
we commonly believe. In this What is your opinion about the increased consumer indebtedness that has
engaging and thought-provoking occurred in the United States during the past 60 years? Do you think it is a
book, Lendol Calder shows that national problem? Or do you agree with historians like Lendol Calder, who
this conception of the past is in believe that the comparison between “now and then” is not as straightforward
fact a myth.” as it appears at first glance? Explain your reasoning.

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268 Chapter 6 The Mathematics of Borrowing & Saving

6.2 Exercises
Motorcycles The tables show loan rates and terms for new and used motorcycle
purchases. In Exercises 1–5, use the tables. (See Examples 1 and 2.)

NEW MOTORCYCLE USED MOTORCYCLE 1. You buy a brand-new, custom-built

chopper for $35,000.
Loan APR Loan APR a. What is the monthly payment
on a 60-month loan?
0 to 24 months 4.24 0 to 24 months 5.24
b. Create an amortization table
25 to 36 months 4.49 25 to 36 months 5.49 showing how the balance
of the loan decreases.
37 to 48 months 4.74 37 to 48 months 5.74

49 to 60 months 4.99 49 to 60 months 5.99

61 to 72 months 5.49 61 to 66 months 6.49

73 to 84 months 6.74

2. You buy a used motorcycle for

or $8000.
ment on
a. What is the monthly payment
a 36-month loan?
ble showing
b. Create an amortization table
an decreases.
how the balance of the loan

3. You buy a used motorcycle foror $5000 and choose a 24-month loan. In 12 months,
is the remaining balance less than one-half of the original loan amount? If not, when
does this occur?

4. You buy a new motorcycle for $18,000 and choose

an 84-month loan. What is the cost of credit?

5. You buy a new dirt bike for $13,000.

a. Find the monthly payments on loans with terms of
2 years, 3 years, 4 years, and 5 years.
b. Find the cost of credit for each loan. How does the
cost of credit change as the term increases?

6. Double Payments You are considering a 5-year

loan for a motorcycle. Will making double monthly
payments decrease the cost of credit by 50%? Given
that you can easily make double payments, should you
choose a different term? Explain.

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6.2 Buying Now, Paying Later 269

Credit Cards You have had a credit card for 2 years. In Exercises 7–11, use the terms
and conditions below that apply to your credit card. (See Examples 3 and 4.)

7. You have the lowest possible APR. You use the credit card to purchase 3 nights in a
hotel for a total of $350. Your bill also includes $250 from last month. The minimum
payment each month is $15. How long does it take to pay the credit card bill by
making only the minimum payment each month? How much do you pay in interest?

8. You have the lowest possible APR. You use the credit card to purchase
airplane tickets to Australia for $1500. Your bill also includes $591.50 from
last month. The minimum payment is either 2% of your statement balance
rounded to the nearest whole dollar or $15, whichever is greater. How long
does it take to pay the credit card bill by making only the minimum payment
each month? How much do you pay in interest?

9. You take a cash advance of $500. How long does it take to pay for the advance
by making $50 payments each month? How much do you pay in interest?

10. Your credit card statement is shown. You plan to pay $300 each month.
How much more do you pay in interest with the maximum APR than with
the minimum APR? (Note: There is an interest charge after this month.)

Previous Balance 673.92

11. You can pay the $1730 credit card Payments -673.92
balance with a 2-year installment loan Charges 1,730.00
that has an APR of 6.5%, or a 1-year Fees 0.00
installment loan that has an APR of 9%. Interest Charged 0.00
Which loan has a lesser cost of credit? Credits 0.00
How much do you save by choosing New Balance 1,730.00
this loan? Minimum Payment Due 35.00
PAY BILL

12. Paying Debt Your credit card balance is $500. You can afford to pay $100 each month
toward the balance. Should you do this or should you make the minimum payment of
$20 each month? Explain your reasoning.
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270 Chapter 6 The Mathematics of Borrowing & Saving

Federal Funds Rate In Exercises 13 and 14,

use the graph. (See Example 5.) Federal Funds Rate (1956–2011)
20
13. The federal funds rate is the interest rate that
18
banks charge each other for overnight loans.
16
Do you think the prime interest rate and the
federal funds rate are related? Explain. 14
12

Percent
14. The APR on a fixed-rate loan stays the same 10
during the term of the loan. The APR on an 8
adjustable-rate loan generally increases 6
and decreases along with rates set by the 4
Federal Reserve, but it starts out at a lesser 2
rate than a fixed-rate loan. When do you 0
think an adjustable-rate loan would have been 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011
cheaper than a fixed-rate loan? Which is more Year
risky? Explain.

Student Loans In Exercises 15 and 16, use the

Student Loan Debt bar graph. (See Example 6.)
Average debt per graduating

25,000
senior in the U.S. (dollars)

15. Taking inflation into account, did the typical

$23,200
graduating senior have more student loan debt
20,000
$18,650
in 2004 than in 2000? Explain.
$17,350
15,000
16. Taking inflation into account, did the typical
$12,750
10,000 graduating senior have more student loan debt
in 2008 than in 1996? Explain.
5,000
17. Credit Card Debt In 2000, there were 159 million
0 credit card holders with a total of $680 billion in
1996 2000 2004 2008
outstanding credit card debt. In 2008, there were
Year
176 million credit card holders with a total of
$976 billion in outstanding credit card debt. Did
the typical credit card holder have more outstanding
credit card debt in 2008 than in 2000? Explain.
(See Example 6.)

18. Mortgage Debt Consumer credit

does not include home mortgages. The Consumer Credit and Mortgage Debt
graph shows consumer credit and home 17,500
Amount (billions of dollars)

mortgage debt from 1960 through 2010. Home mortgage debt $13,830 billion
15,000
(See Example 6.) Consumer credit
a. There were 53 million households 12,500

in 1960 and 118 million households 10,000

in 2010. Did a typical household
have more home mortgage debt 7,500
in 2010 than in 1960?
5,000
b. Did home mortgage debt or $210 billion
consumer credit increase at a 2,500
greater rate since 1980? What
0
may have caused this? 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Year

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6.2 Buying Now, Paying Later 271

Extending Concepts
Credit Cards The tables show all the activity in two credit card accounts for
an entire billing period. In Exercises 19–24, use the tables.

Date Activity Amount Balance

Starting
April 1 $300.00 balance
April 5 Gas $45.00 $345.00
April 8 Payment −$300.00 $45.00
April 23 Groceries $70.00 $115.00
Ending
April 30 $115.00 balance

Date Activity Amount Balance

Starting
July 21 $800.00 balance
July 29 Car insurance $110.00 $910.00
August 3 Gym membership $40.00 $950.00
August 3 Payment −$500.00 $450.00
August 9 Cell phone $75.00 $525.00
Ending
August 20 $525.00 balance

19. When a billing period ends, the ending balance plus any additional charges becomes the
starting balance of the next billing period. The account owners have 25 days from the
end of the billing period to make a payment. Are the payments shown made on time?

20. Each credit card account has no interest charge as long as the balance of the previous
billing period was paid in full. Do the accounts have interest charges for the billing
periods shown? Explain.

21. The owner of the Gold Card receives a billing statement

for the month of May. The statement includes an
interest charge. What can you determine about
the amount paid on the April statement?

22. The daily periodic rate (DPR) of a credit card is the

daily interest rate, which is the APR divided by the
number of days in a year. The APR of each credit card
is 19.99%. Find the DPR of each credit card.

23. The average daily balance of a credit card account nt in a

billing period is the sum of the balances at the end
d of each
day in the billing period divided by the number off days in
the billing period. Find the average daily balance of each
account.

24. The interest charge on each credit card account is the product
oduct of
the average daily balance, the DPR, and the number of daysays in the
billing period. Find the interest charge for the World Card.
d.

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272 Chapter 6 The Mathematics of Borrowing & Saving

6.1– 6.2 Quiz

Credit Unions In Exercises 1– 6, use the partially completed promissory note
for a recreational vehicle (RV) loan.

Promissory Note
I, Raja Kumar , promise to repay My Federal Credit Union
the loan amount of $100,000 . Repayment is to be made in the
form of 60 equal payments at 6.75% interest, or $
payable on the 1st of each month, beginning ,
until the total debt is satisfied.
Signed,
Raja Kumar
2/1/2011

1. Find the term of the loan and the loan proceeds.

2. What is the monthly payment?

3. Find the total amount due and the cost of credit.

4. The first payment is due March 1, 2011. When is the last

payment due?

5. The graph shows the decreasing balance of the loan. When is the
remaining balance about one-fourth of the original loan amount?

Loan Balance
$100,000
Balance after payment

$75,000

$50,000

$25,000

$0
0 5 10 15 20 25 30 35 40 45 50 55 60
Payment

6. The credit union offers Raja a 0.25% reduction in the APR by initiating automatic
monthly payments from his checking account. How much does he save over the
term of the loan by doing this?

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Chapter 6 Project Math & Buying a Car 273

Math & Buying a Car

PROJECT: How Much Car Can I Afford?

1. Use the How Much Car Can I Afford* calculator

calcul at [Link].

Enter the maximum

monthly payment
you can afford.

Enter the interest

rate for the loan.
00

Describe the car you will

trade in. The calculator
will compute its value.

You can afford a car

in this price range.

*Provided by [Link]
2. Enter other zip codes until you find one that gives you different
results. Why might other zip codes give you different results?
3. Enter the market Market Finance Rate Sticker Price Range
finance rates shown. 0.00 %
How much is
1.00 %
subtracted from the
sticker price range 2.00 %
each time you increase 3.00 %
the rate by 1%?
4.00 %
5.00 %
6.00 %
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274 Chapter 6 The Mathematics of Borrowing & Saving

6.3 Home Mortgages

Compare rates and terms for a home mortgage.
Analyze the effect of making principal payments.
Compare the costs of buying and renting.

Comparing Rates and Terms for Home Mortgages

Study Tip
A home mortgage is an installment loan that is taken out to pay for a home. For
If you are considering
most people, it is the largest loan they will ever assume. For this reason, consider
buying a home, spend some
time looking into the the following when purchasing a home.
finances, insurance, fees, 1. Understand the annual percentage rate for the loan. Is it fixed throughout the
taxes, condition, and term or is it adjustable?
location of the house.
2. Make sure the contract allows you to make extra payments toward the principal.
Signing up for a mortgage
that is unrealistic compared 3. Shop for or negotiate the best possible rate. A difference of even 1% can save
to one’s monthly income is you tens of thousands of dollars.
a common mistake. 4. Shop for real estate agents. The fee an agent charges you is negotiable.

Comparing Rates for a Home Mortgage

You take out a home mortgage for $250,000 for 30 years. Compare the
total interest you pay for annual percentage rates of (a) 4% and (b) 6%.
SOLUTION
0.04/12 0.06/12

[ ] [ ]
0.003333 0.005
—— ——
a. M = 250,000 360
b. M = 250,000 360

(
1− —
1
1.003333 ) ( )
1− —
1
1.005

= $1193.54 = $1498.88
Your payments total Your payments total
360(1193.54) = $429,674.40. 360(1498.88) = $539,596.80.
You pay $179,674.40 in interest. You pay $289,596.80 in interest.
An increase of only 2 percentage points increases the interest that you pay by
about $110,000! Can you imagine how much interest people paid in the early
1980s, when home mortgage rates were about 20%?

Checkpoint Help at

c. In Example 1, do you pay about $110,000 more in interest when the annual
percentage rate is 8%? Explain your reasoning.
d. In general, does the amount of interest you pay double when the annual
percentage rate doubles? Explain your reasoning.
e. In Example 1, does the amount of interest you pay double when the amount
borrowed doubles? Explain your reasoning.
f. In general, does the amount of interest you pay double when the principal
doubles? Explain your reasoning.

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6.3 Home Mortgages 275

Comparing Terms for a Home Mortgage

You take out a home mortgage for $250,000 at 6%. Compare the total
pay for terms of (a) 20 years, (b) 30 years, and (c) 40 years.
interest you pa

SOLUTION

[ ]
0.005
——
a. M = 250,000 240 = $1791.08 20 years
1− —
1
( )
1.005

Your payments total 240(1791.08) = $429,859.20.

The total interest you pay over 20 years is $179,859.20.

[ ) ]
0.005
The median price of a new home ——
b. M = 250,000
b 250 0 360 = $1498.88 30 years
in the United States during 2010
was about $221,000.
(
1− —
1
1.005

Your payments total 360(1498.88) = $539,596.80. The total interest

you pay over 30 years is $289,596.80.

[ ]
0.005
——
c. M = 250,000 480 = $1375.53 40 years
1− —
1
1.005 ( )
Your payments total 480(1375.53) = $660,254.40. The total interest
you pay over 40 years is $410,254.40.

Total Interest Paid for Varying Terms

(Principal ä $250,000, APR ä 6%)
A B
$600,000
Term Monthly
1 (years) Payment
$500,000
2 5 $4,833.20
3 10 $2,775.51 $400,000
4 15 $2,109.64
Interest

5 20 $1,791.08 $300,000
6 25 $1,610.75
7 30 $1,498.88 $200,000
8 35 $1,425.47
$100,000
9 40 $1,375.53
10 45 $1,340.71
$0
11 50 $1,316.01 5 10 15 20 25 30 35 40 45 50
Term (years)
This table shows the monthly
payment for a mortgage of
$250,000 at 6% for varying
terms. Notice that increases in Checkpoint Help at
the term eventually amount to
insignificant reductions in the You take out a home mortgage for $250,000 at 12%. Compare the total interest
monthly payment. you pay for the following terms.
d. 20 years e. 30 years f. 40 years
g. Are your answers double those in Example 2? What can you
conclude from this?

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276 Chapter 6 The Mathematics of Borrowing & Saving

Analyzing the Effect of Principal Payments

There are three important numbers connected with any home mortgage: market
value, principal balance, and equity.

• Market value is the amount that the home could sell for.
• Principal balance is the amount owed on the mortgage.
• Equity is the difference between the market value and the principal balance.

Equity = Market value − Principal balance

E
Each month, after paying the interest, each dollar in your payment goes toward
decreasing
d your principal balance and increasing your equity. Even small additional
“principal payments” (payments above the normal monthly payment) can have
“p
ddramatic effects in the overall amount of interest you pay throughout the term of
the mortgage.
th

Analyzing the Effect of Principal Payments

Y take out a home mortgage for $250,000 for 30 years at 6%. Each month,
You
yyou make the regular payment of $1498.88 plus an additional $50. (a) How much
sooner do you pay off the mortgage? (b) How much do you save in interest?
so

SOLUTION
SOLUTIO
S
aa. Use a spreadsheet to create an amortization table.

A B C D E F
Payment Balance
Payme B l before Interest on Monthly Extra Balance after
1 Number
Numb Payment Balance Payment Payment Payment
2 1 $250,000.00 $1,250.00 $1,498.88 $50.00 $249,701.12
3 2 $249,701.12 $1,248.51 $1,498.88 $50.00 $249,400.75
4 3 $249,400.75 $1,247.00 $1,498.88 $50.00 $249,098.88
5 4 $249,098.88 $1,245.49 $1,498.88 $50.00 $248,795.50
6 5 $248,795.50 $1,243.98 $1,498.88 $50.00 $248,490.60
1
328 327 $5,926.39 $29.63 $1,498.88 $50.00 $4,407.15
329 328 $4,407.15 $22.04 $1,498.88 $50.00 $2,880.31
330 329 $2,880.31 $14.40 $1,498.88 $50.00 $1,345.83
331 330 $1,345.83 $6.73 $1,352.56 $0.00 $0.00
332 Total $494,482.87 $16,450.00
333

Instead of taking 360 months, it takes only 330 months, which is 2.5 years sooner.

Study Tip b. Instead of your payments totaling $539,596.80 [see Example 1(b)], your
payments total 494,482.87 + 16,450.00 = $510,932.87, which is a savings of
Some mortgages do not
allow the homeowner
$28,663.93. All of this savings represents interest that you do not have to pay.
to make extra principal
payments. Before signing Checkpoint Help at
a mortgage contract, make
sure the contract allows you In Example 3, suppose that each month you make the regular payment plus
to make extra payments an additional $100. (c) How much sooner do you pay off the mortgage?
whenever you want.
(d) How much do you save in interest?

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6.3 Home Mortgages 277

A balloon mortgage is a mortgage that is amortized over a period that is longer

than the term of the loan, leaving a large final payment due at maturity. The final
payment is called a balloon payment.

Analyzing the Cost of a Balloon Mortgage

You take out a 10-year balloon mortgage for $250,000. The monthly payment is
equal to that of a 30-year mortgage with an annual percentage rate of 6%. Find
the balloon payment and the total interest that you pay.

SOLUTION
From Example 1(b), the monthly payment for a 30-year mortgage for $250,000
with an annual percentage rate of 6% is $1498.88. Use a spreadsheet to amortize
the mortgage for 10 years using this monthly payment.

A B C D E
Pa
Payment Balance before Interest on Monthly Balance after
1 N
Number Payment Balance Payment Payment
2 1 $250,000.00 $1,250.00 $1,498.88 $249,751.12
3 2 $249,751.12 $1,248.76 $1,498.88 $249,501.00
4 3 $249,501.00 $1,247.51 $1,498.88 $249,249.63
5 4 $249,249.63 $1,246.25 $1,498.88 $248,997.00
6 5 $248,997.00 $1,244.99 $1,498.88 $248,743.11
7 6 $248,743.11 $1,243.72 $1,498.88 $248,487.95
8 7 $248,487.95 $1,242.44 $1,498.88 $248,231.51
9 8 $248,231.51 $1,241.16 $1,498.88 $247,973.80
10 9 $247,973.80 $1,239.87 $1,498.88 $247,714.79
11 10 $247,714.79 $1,238.57 $1,498.88 $247,454.49

115 114 $212,321.49 $1,061.61 $1,498.88 $211,884.22

116 115 $211,884.22 $1,059.42 $1,498.88 $211,444.77
117 116 $211,444.77 $1,057.22 $1,498.88 $211,003.12
118 117 $211,003.12 $1,055.02 $1,498.88 $210,559.25
119 118 $210,559.25 $1,052.80 $1,498.88 $210,113.17
120 119 $210,113.17 $1,050.57 $1,498.88 $209,664.86
121 120 $209,664.86 $1,048.32 $1,498.88 $209,214.31
122 Total $139,079.47
123
Balloon payment

After making 120 payments, you must make a balloon payment of $209,214.31.
The total interest that you pay over the 10 years is $139,079.47.
Study Tip
A balloon mortgage lets
you make small monthly Checkpoint Help at
payments, but at the end
of the mortgage you must You take out a 5-year balloon mortgage for $200,000. The monthly payment
make a large final payment. is equal to that of a 20-year mortgage with an annual percentage rate of 6.5%.
Find the balloon payment and the total interest that you pay.

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278 Chapter 6 The Mathematics of Borrowing & Saving

Comparing the Costs of

Buying and Renting
When you are deciding whether to buy or
rent, and you have a substantial amount of
money in savings, you have two options:
(1) use the money as a down payment for
a home mortgage or (2) rent a home and
use the money as an income investment.

Study Tip
A $350,000 home that rents
for $2000 per month has Comparing Buying and Renting
a “price-to-rent” ratio of
You take out a home mortgage for $250,000 for 30 years at 6%. After 5 years,
about 15, which is typical.
you move to a different state and sell the home for $367,850.
Cost of home $350,000
—— =—
Annual rent $24,000
Expenses and Savings Related to Buying
≈ 15
Cost of home: $350,000 Realtor’s fee: 6% of cost of home
Down payment: $100,000 Home insurance: $1000 per year
Mortgage: $250,000 Property tax: 3% of cost of home per year
Monthly payment: $1498.88 Home repairs: $17,000
Closing costs: 2% of cost of home Income tax savings (interest): $18,000

C
Compare the costs of buying the home and renting a comparable home
ffor $2000 per month.

SOLUTION
S
Here are your expenses and savings with buying.
H
60 mortgage payments 89,932.80
Closing costs of 2% 7,000.00
Realtor’s fee of 6% 21,000.00
Home insurance 5,000.00
Property tax: 52,500.00
Home repairs: 17,000.00
Income tax savings −18,000.00
Increase in equity −17,850.00
Total: $156,582.80
I you had rented for 5 years, you would have paid 60(2000) = $120,000 in rent.
If
However,
H you could also have invested the $100,000 down payment and perhaps
earned
e $16,000 in interest. So, your total cost would have been about $104,000.
So,
S in this case, the cost of renting is about $53,000 less than the cost of buying.

H
Home maintenance
i iis often
f Checkpoint Help at
called the “hidden cost of home
ownership.” You should expect to a. Describe other issues that can affect your decision to rent or to buy.
spend between 1% and 2% of the b. Do you agree with the federal income tax policy that allows homeowners a
cost of your home each year on deduction for interest paid on mortgages, but does not allow a comparable
home repairs and maintenance. deduction for renters? Explain your reasoning.

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6.3 Home Mortgages 279

Analyzing a Housing Bubble

In the graph, the curve shows that around 1998, the prices of homes began
to increase abnormally, which is called a bubble. Around 2007, the bubble
burst. Explain why this caused a record number of foreclosures throughout
the United States.

U. S. Home Prices (1970−2010)

$275,000
$250,000 Actual
$225,000
$200,000

Median Price
$175,000
$150,000
$125,000
$100,000
$75,000 Pre-bubble trend
$50,000
$25,000
$0
1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010
Year

SOLUTION
At first glance, you would think that a drop in the value of your home would not
be much of a concern. However, during the early 2000s, banks were offering
subprime and adjustable-rate mortgages to entice more and more people to buy
homes. Here is a hypothetical, but all too common, example.
It is 2005. You have been looking at a home that was sold for $200,000 in 1999.
The home is being sold again and is listed for $400,000. That is a compound
increase of about 12.2% per year. You feel like you have to take out a mortgage
now or you will never be able to afford a home. Your bank offers you a 10% down
mortgage with a subprime rate of 4%. The rate will be adjusted in 3 years, but at
that time, the home should be worth more money and you can refinance, using the
equity you have built up.

Monthly payment: $1718.70 (2005–2008)

Study Tip It is now 2008. The rate on your mortgage increases to 6.5%, raising your
Foreclosure filings include mortgage payment to $2275.44. You still owe about $340,000 on your mortgage
default notices, scheduled but the value of your home has dropped to $300.000. You cannot afford the
auctions, and bank increased mortgage payment, and you owe more on your home than you can sell
repossessions. In 2010, it for. What do you do? For many homeowners in 2008, the answer was to let the
2,871,891 properties bank foreclose on the home.
received a foreclosure filing.
Checkpoint Help at

How are banks affected by foreclosures?

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280 Chapter 6 The Mathematics of Borrowing & Saving

6.3 Exercises
Mortgage Rates You take out a home mortgage. In Exercises 1–4, compare the total interest
you pay for the annual percentage rates. (See Example 1.)
1. Home mortgage: $140,000 for 30 years 2. Home mortgage: $165,000 for 30 years

a. 5% b. 7%

a. 8% b. 10%

3. Home mortgage: $220,000 for 30 years 4. Home mortgage: $275,000 for 30 years

a. 4% b. 6% a. 6% b. 8%

Mortgage Terms You take out a home mortgage. In Exercises 5 and 6, compare the total interest
you pay for the terms. (See Example 2.)
5. Home mortgage: $200,000 at 5% 6. Home mortgage: $180,000 at 6%

a. 20 years b. 30 years c. 40 years a. 15 years b. 25 years c. 30 years

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6.3 Home Mortgages 281

Amortization Schedules In Exercises 7–10, use a spreadsheet. (See Example 3.)

77. Y
You take out a home mortgage for $238,000 for 30 years at 5%.
Each month, you make the regular payment of $1277.64 plus
an additional $60.
a. How much sooner do you pay off the mortgage?
b. How much do you save in interest?

8. You take out a home mortgage for $260,000 for 30 years at

6%. Each month, you make the regular payment of $1558.83
plus an additional $100.
a. How much sooner do you pay off the mortgage?
b. How much do you save in interest?

9. You take out a home mortgage for $275,000 for 25 years at 4%.
a. What is the least amount, to the nearest dollar, that you need to pay in
addition to the regular payment to pay off the mortgage 5 years early?
b. Compare the total interest you pay for the 25-year mortgage to the total
interest you pay when you pay off the 25-year mortgage 5 years early.

10. You take out a home mortgage for $190,000 for 20 years at 5%.
a. What is the least amount, to the nearest dollar, that you need to pay in
addition to the regular payment to pay off the mortgage 5 years early?
b. Compare the total interest you pay for the 20-year mortgage to the total
interest you pay when you pay off the 20-year mortgage 5 years early.
c. Compare the total interest you pay for a 15-year mortgage for the same
amount and at the same rate to the total interest you pay when you pay
off the 20-year mortgage 5 years early
early.

Balloon Mortgages In Exercises 11 and 12, use a

spreadsheet. (See Example 4.)
11. You take out a 5-year balloon mortgage for $150,000.
The monthly payment is equal to that of a 15-year
mortgage with an annual percentage rate of 5%. Find
the balloon payment and the total interest that you pay.

12. You take out a 7-year balloon mortgage for $120,000.

The monthly payment is equal to that of a 30-year
mortgage with an annual percentage rate of 5.5%. Find
the balloon payment and the total interest that you pay.

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282 Chapter 6 The Mathematics of Borrowing & Saving

Buying Versus Renting In Exercises 13 and 14, compare the costs of buying the home
and renting a comparable home for $1600 per month. (See Example 5.)
13. You take out a home mortgage for $224,000 for 30 years at 5%. After 5 years, you move to
a different state and sell the home for $294,280. Assume that if you did not buy the home,
you could have invested the down payment and earned $12,000 in interest.

Expenses and Savings Related to Buying

Cost of home: $280,000 Realtor’s fee: 6% of cost of home
Down payment: $56,000 Home insurance: $1400 per year
Mortgage: $224,000 Property tax: 2.5% of cost of home per year
Monthly payment: $1202.48 Home repairs: $15,000
Closing costs: 5% of cost of home 00
Income tax savings (interest): $11,000

14. You take out a home mortgage for $200,000 for 30 years at 4%. After
6 years, you move to a different city and sell the home for $281,540.
Assume that if you did not buy the home, you could have invested
the down payment and earned $13,000 in interest.

Expenses and Savings Related to Buying

Cost of home: $250,000 Realtor’s fee: 5% of cost of home
Down payment: $50,000 Home insurance: $1300 per year
Mortgage: $200,000 Property tax: 1.4% of cost of home per year
Monthly payment: $954.83 Home repairs: $16,000
Closing costs: 3% of cost of home 000
Income tax savings (interest): $9000

Price-to-Rent Ratio In Exercises 15 and 16, find the price-to-rent ratio.

15. The cost of a home is $162,000. The rent for a comparable home is
$800 per month.

16. The cost of a home is $156,000. The rent for a comparable home is
$700 per month.

Housing Bubble In Exercises 17–20, use the graph on page 279. (See Example
xample 6.)
17. Suppose home prices followed the pre-bubble trend.
a. What would have been the price of a home in 2006?
b. How much more was the actual price of a home in 2006?

18. Estimate the percent change in home prices from 2004 to 2010.

19. Estimate the percent decrease in home prices from 2007 to 2009.

20. Compare the percent increase in home prices from 1989 to 1998 to the percent
increase in home prices from 1998 to 2007.

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6.3 Home Mortgages 283

Extending Concepts
Discount Points In Exercises 21 and 22, use the information below.
Lenders may offer you the option to purchase discount points to
reduce the interest rate on a loan. One point is equal to one percent
of the loan amount.

21. You take out a home mortgage for $150,000 for 30 years.
a. Compare the monthly payments of mortgage A and mortgage B..
Mortgage A: 4.5% with 2 points
Mortgage B: 5% with no points
ay
b. Suppose you choose mortgage A. How long will it take you to pay
off the points with your monthly savings from the lower rate?

22. You take out a home mortgage for $120,000 for 30 years.
a. Compare the monthly payments of mortgage A and mortgage B.
Mortgage A: 5.5% with 3 points
Mortgage B: 6% with 1 point
b. Suppose you choose mortgage A. How long will it take you to pay
off the points with your monthly savings from the lower rate?

23. Mortgage Reset You take out a 7-year balloon mortgage for $160,000. The monthly
payment is equal to that of a 30-year mortgage with an annual percentage rate of
5.5%. At the end of 7 years, you have the option to reset the mortgage and pay off
the remaining balance over the next 23 years with an annual percentage rate of 6.5%.
a. How much interest do you pay?
b. How much would you save in interest by taking out a
30-year mortgage with an annual percentage rate of 6%?

24. Principal and Interest You take out a home mortgage for
$150,000 for 15 years with an annual percentage rate of 6%.
a. Find the total amount that you pay in interest each year
and the total amount that you pay toward the principal
each year.
b. Make a double bar graph that displays the information
in part (a). Describe any trends in the graph.

25. Mortgage Affordability You can afford to make monthly

payments of $600. How large of a home mortgage can you
afford at a rate of 5% for a term of 30 years?

26. Adjustable-Rate Mortgage You take out a 30-year adjustable-ratee-rate mortgage

(ARM) for $100,000. The interest rate is 5% for the first 5 years
ars and 8% for
the sixth year. What is “ARM reset shock”? How can you avoid id it?

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284 Chapter 6 The Mathematics of Borrowing & Saving

6.4 Savings & Retirement Plans

Find the balance in a savings account.
Find the balance in an increasing annuity.
Analyze a decreasing annuity.

Finding the Balance in a Savings Account

When you deposit money into a savings account earning compound interest, the
balance in the account grows exponentially. The formula for the balance depends
on how often the interest is compounded.

Interest Compounded Monthly

The balance A in a savings account with a principal of P, for n months at an
annual percentage rate of r (in decimal form), compounded monthly, is
r n
(
A=P 1+— .
12)
.and .com
You can access compound interest calculators at [Link].

Comparing Terms for a Savings Plan

When your daughter is born, your grandparents deposit $5000 into a savings
account that earns 4%, compounded monthly.
a. Find the balance in the account when your daughter is 18 years old.
b. Find the balance in the account when your daughter is 26 years old.

SOLUTION 12(18)

0.04 216
(
a. A = 5000 1 + —
12 ) = $10,259.87 18th birthday

Study Tip 12(26)

The Rule of 72 is commonly 0.04 312

used by investors. It states
that the number of years it
(
b. A = 5000 1 + —
12 ) = $14,121.64 26th birthday

will take for an investment

to double is equal to 72 Checkpoint Help at
divided by the interest rate.
Suppose your grandparents invest the money into a mutual fund that earns 10%,
compounded monthly.
c. Find the balance in the account when your daughter is 18 years old.
d. Find the balance in the account when your daughter is 26 years old.

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6.4 Savings & Retirement Plans 285

Calculating the Consequences of Franklin’s Will

Benjamin Franklin died in 1790. In his will, he left 1000 pounds sterling
(about $4444.44) to Boston and to Philadelphia. He expected the money to earn
5% annually for 100 years. Then, about 75% of the money would be distributed
for various projects and the remaining 25% would be invested at 5% for another
100 years. The trust funds were set up in 1791.
a. How much did Franklin expect each city to have after 100 years?
b. Despite Franklin’s calculations, Boston had only about $100,000 to reinvest
after the distributions. This money earned about 4.1% annually for the next
100 years. What was the balance in Boston’s fund in 1991?
c. Philadelphia had only about $40,000 to reinvest after the distributions. This
““. . . I wishh to be
b useful
f l even after
f money also earned about 4.1% annually for the next 100 years. What was the
my death, if possible, in forming balance in Philadelphia’s fund in 1991?
and advancing other young men,
that may be serviceable to their SOLUTION
country in both these towns. To
this end, I devote two thousand a. A = 4444.44(1 + 0.05)100 ≈ $584,449
pounds sterling, of which I give
one thousand thereof to the Balance in Account with Initial Deposit of
inhabitants of the town of Boston, $4444.44 at 5% Compounded Annually
in Massachusetts, and the other $600,000
thousand to the inhabitants of
the city of Philadelphia, in trust, $500,000
to and for the uses, intents, and
purposes herein after mentioned $400,000
Balance

and declared. . .”
$300,000

$200,000

$100,000

$0
0 10 20 30 40 50 60 70 80 90 100
Year

b. In 1991, the balance of Boston’s fund was about

A = 100,000(1 + 0.041)100 ≈ $5,559,976.
c. In 1991, the balance of Philadelphia’s fund was about
A = 40,000(1 + 0.041)100 ≈ $2,223,991.
So, although Franklin had intended for the two cities to end up with over
$38 million, the actual amount they received was about $7.8 million.

Checkpoint Help at

The CPI from 1774 through 2010 is shown on page 165. Use this index to
estimate the value of $5.6 million (in 1991 dollars) at the time of Franklin’s
death in 1790.

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286 Chapter 6 The Mathematics of Borrowing & Saving

Finding the Balance in an Increasing Annuity

An increasing annuity is a savings account in which you make repeated deposits.
This type of savings account is often used to create retirement funds.

Balance in an Increasing Annuity

The balance A in an increasing annuity with a monthly deposit of M, for
n months at an annual percentage rate of r (in decimal form), compounded
monthly is

[
A = M —— .
[1 + (r/12)]n − 1
r/12 ]
.and .com
You can access increasing annuity calculators at [Link].

Creating a Retirement Plan

Yo start your working career when you are 22 years old. Each month, you deposit
You
$100 into a pension plan. You continue making deposits into the plan until you are
$1
72 years old. What is the balance when the plan earns
a. 4%, compounded monthly?
b. 6%, compounded monthly?
c. 8%, compounded monthly?

SOLUTION
SO
1 + (0.04/12) 12(50)

[ (1.00333)600 − 1
a. A = 100 —— = $190,935.64
0.00333 ] (4%)

1 + (0.06/12) 12(50)

[ (1.005)600 − 1
b. A = 100 —— = $378,719.11
0.005 ] (6%)

1 + (0.08/12) 12(50)

In 2010, there was an estimated

$15 trillion invested in private [ (1.00667)600 − 1
c. A = 100 —— = $793,172.75
0.00667
] (8%)
retirement plans in the
United States.
Checkpoint Help at

Suppose that you continue to make the monthly deposits for only 45 years,
instead of 50 years. What is the balance when the plan earns
d. 4%, compounded monthly? e. 6%, compounded monthly?
f. 8%, compounded monthly?

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6.4 Savings & Retirement Plans 287

The retirement plan in Example 3 is somewhat unreasonable because it assumes

that a person invests the same amount each month for 50 years. In a typical
retirement plan, the monthly amount that a person invests increases over time.

Creating a Retirement Plan

You start your working career when you are 22 years old. Your beginning salary
Study Tip is $40,000 per year. Your employer offers a 401(k) matching retirement plan that
The money invested in a amounts to 10% of your salary (5% from you and 5% from your employer). Assume
401(k) retirement plan is that your salary increases 3% each year and that the 401(k) plan averages 6% annual
tax deferred. As such, these returns for the life of the plan. What is the balance in your account at age 70?
plans follow rules and
regulations published by SOLUTION
the IRS. The following spreadsheet is oversimplified because it calculates interest annually,
instead of monthly. It still gives you the magnitude of the balance after 48 years.

A B C D
Annual 401(k) Balance Interest
1 Salary Contribution in Account Earned
2 $40,000.00 $4,000.00 $4,000.00 $240.00
3 $41,200.00 $4,120.00 $8,360.00 $501.60
47 $151,263.83 $15,126.38 $1,426,059.17 $85,563.55
48 $155,801.75 $15,580.17 $1,527,202.89 $91,632.17
49 $160,475.80 $16,047.58 $1,634,882.65 $98,092.96
50 Total $417,633.58 $1,315,342.02
51
So, at the end of 48 years, you and your employer will have contributed about
$418,000 into the account, and the account will have earned about $1,315,000
in interest, for a total balance of about $1,733,000.

Checkpoint Help at

The graph shows the balance in the retirement account in Example 4. Use the
graph to estimate your account at age 59.
timate the balance in you

Retirement Account Balance

Retir
$1,800,000
800,000
$1,600,000
600 000
Balance iin account

$1,400,000
$1,200,000
$1,000,000
$800,000
$80
$600,000
$60
$400,000
$40
$200,000
$20
$0
3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48
Year

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288 Chapter 6 The Mathematics of Borrowing & Saving

Analyzing a Decreasing Annuity

A decreasing annuity is an investment that is earning interest, and from which
you make regular withdrawals of a fixed amount.

Withdrawing from a Retirement Plan

You retire at age 68. Your 401(k) retirement plan has a balance of $1 million. How
much can you withdraw from your account each year?

SOLUTION
One option is to withdraw all of it. Of course, the deposits were tax
deferred, so when you withdraw the funds, you will have to pay
income tax on the withdrawals. To decide how much you should
withdraw for a retirement income, you should consider the following.

• How much interest is the account earning?

• How long do you expect to live?
• What other income sources do you have?

Suppose the account earns 5%, compounded monthly, and you want an income
of $60,000 a year. You can use a spreadsheet to determine how many years the
account can continue making payments.

A B C D E
M
Month Balance before Monthly Interest Balance after
1 Number
Nu Withdrawal Withdrawal Earned Withdrawal
2 1 $1,000,000.00 $5,000.00 $4,145.83 $999,145.83
3 2 $999,145.83 $5,000.00 $4,142.27 $998,288.11
4 3 $998,288.11 $5,000.00 $4,138.70 $997,426.81
5 4 $997,426.81 $5,000.00 $4,135.11 $996,561.92
6 5 $996,561.92 $5,000.00 $4,131.51 $995,693.43
238 237 $658,081.18 $5,000.00 $2,721.17 $655,802.36
239 238 $655,802.36 $5,000.00 $2,711.68 $653,514.03
240 239 $653,514.03 $5,000.00 $2,702.14 $651,216.17
241 240 $651,216.17 $5,000.00 $2,692.57 $648,908.74
242

After 20 years, you are 88 years old. Your account still has a balance of nearly
$650,000, and you have withdrawn a total of $1.2 million from the account.

Checkpoint Help at

Rework Example 5 using the following conditions.

a. Withdrawals: $70,000 a year Earned interest: 5%
b. Withdrawals: $60,000 a year Earned interest: 4%
c. Withdrawals: $100,000 a year Earned interest: 6%
What would you do? Explain your reasoning.

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6.4 Savings & Retirement Plans 289

There are two basic types of retirement plans: (1) defined contribution plans
and (2) defined benefit plans. Examples 3, 4, and 5 describe the first type. The
following example describes the second type.
Study Tip
The scenario described in Analyzing a Defined Benefit Plan
Example 6 is common for
You are 55 years old and have worked for a government municipality for
people who have defined
30 years. Your defined benefit retirement plan will pay you 2% of your average
benefit retirement plans.
The question is whether income for the last 3 years for each year you have worked. Your average annual
you should retire sooner income during the past 3 years is $85,000. This will increase by 2% each year.
and receive a smaller Suppose you live to age 85. At what age should you retire to receive the greatest
monthly income for a retirement income?
greater number of years,
or retire later and receive a SOLUTION
greater monthly income for
Use a spreadsheet to analyze the possibilities.
a fewer number of years.

A B C D E F
Age Years Average Annual Total
at Years of Working Retirement Retirement
1 Retirement Worked Retirement Income Income Income
2 55 30 30 $85,000 $51,000 $1,530,000
3 56 31 29 $86,700 $53,754 $1,558,866
4 57 32 28 $88,434 $56,598 $1,584,737
5 58 33 27 $90,203 $59,534 $1,607,412
6 59 34 26 $92,007 $62,565 $1,626,679
7 60 35 25 $93,847 $65,693 $1,642,320
8 61 36 24 $95,724 $68,921 $1,654,107
9 62 37 23 $97,638 $72,252 $1,661,804
10 63 38 22 $99,591 $75,689 $1,665,162
11 64 39 21 $101,583 $79,235 $1,663,927
12 65 40 20 $103,615 $82,892 $1,657,832
13 66 41 19 $105,687 $86,663 $1,646,601
14 67 42 18 $107,801 $90,552 $1,629,944
15 68 43 17 $109,957 $94,563 $1,607,565
16 69 44 16 $112,156 $98,697 $1,579,152
17 70 45 15 $114,399 $102,959 $1,544,384
18 71 46 14 $116,687 $107,352 $1,502,926
19 72 47 13 $119,021 $111,879 $1,454,431
20

From the spreadsheet, you can see that for each year you postpone
retirement, your annual retirement income increases. However, the total
amount of retirement income you will receive peaks at a retirement
In the United States, it is still true age of 63 years old.
that most municipal workers, such
as law enforcement employees Checkpoint Help at
and firefighters, have defined
benefit retirement plans. According to the U.S. Bureau of Labor Statistics, only 20% of employees working
for private companies have defined benefit retirement plans. In government jobs,
however, defined benefit plan coverage is about 4 times greater—about 79%. Why
do you think this is true?

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290 Chapter 6 The Mathematics of Borrowing & Saving

6.4 Exercises
Savings Account In Exercises 1– 4, suppose that you deposit $1000 into a
savings account. (See Example 1.)
1. The savings account earns 5%, compounded monthly. Find the balance in the
account after each time period.
a. 10 years
b. 20 years

2. The savings account earns 6%, compounded monthly. Find the balance in the
account after each time period.
a. 10 years
b. 20 years

3. The savings account earns 5.5%, compounded monthly. Your friend

deposits $700 into a savings account that earns 7.5%, compounded
monthly. Which account has the greater balance after 15 years?

4. The savings account earns 6.5%, compounded monthly. Your friend

deposits $600 into a savings account that earns 8%, compounded monthly.
Which account has the greater balance after 40 years?

5. Purchase of Manhattan According to legend, in 1626, Peter Minuit

purchased Manhattan Island from Native Americans for $24 worth of trade
goods. Suppose the $24 had been deposited into a savings account earning
7%, compounded annually. How much would be in the account in 2014?
(See Example 2.)

6. Gift for the Future You deposit $3000 into a savings account that earns 5%,
compounded annually, for future generations of your family. How much will
be in the account after 200 years? (See Example 2.)

7. Investment by an Ancestor Suppose that 350 years ago, 1 of your ancestors

deposited $1 into a savings account earning 6%, compounded annually. How
much would be in the savings account today? (See Example 2.)

8. Compounding a Penny Suppose that 500 years ago, the

equivalent of 1 penny had been deposited into a savings
account earning 8%, compounded annually. How
much would be in the savings account today?
(See Example 2.)

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6.4 Savings & Retirement Plans 291

Pension Plan In Exercises 9–12, use the information below.

(See Example 3.)
You start your working career when you are 22 years old.
Each month, you deposit $50 into a pension plan that
compounds interest monthly. You continue making
deposits into the plan until you are 67 years old.

9. The plan earns 3%. Find the balance in the account.

10. The plan earns 5%. Find the balance in the account.

11. The plan earns 6%.

a. Find the balance in the account.
b. Suppose that you deposit $150 each month instead
of $50. Find the balance in the account.
c. Compare the account balances in part (a) and
part (b).

12. The plan earns 7%.

a. Find the balance in the account.
b. Suppose that you wait until you are 32 years old to begin making deposits.
Find the balance in the account.
c. Compare the account balances in part (a) and part (b).

13. 401(k) Plan You start your working career when you are 22 years old. Your
beginning salary is $50,000 per year. Your employer offers a 401(k) matching
retirement plan that amounts to 10% of your salary (5% from you and 5% from
your employer). Assume that your salary increases 2% each year and that the
401(k) plan averages 6% annual returns for the life of the plan. (See Example 4.)
a. How much have you and your employer contributed to your 401(k) plan
when you are 70 years old?
b. How much interest has your 401(k) plan earned when you are 70 years old?
c. What is the total balance in your 401(k) plan when you are 70 years old?

14. 401(k) Plan You start your working career when you are
22 years old. Your beginning salary is $45,000 per year.
Your employer offers a 401(k) matching retirement plan that
amounts to 10% of your salary (5% from you and 5% from your
employer). Assume that your salary increases 3% each year and
that the 401(k) plan averages 8% annual returns for the life of
the plan. (See Example 4.)
a. How much have you and your employer contributed to
your 401(k) plan when you are 67 years old?
b. How much interest has your 401(k) plan earned when you
are 67 years old?
c. What is the total balance in your 401(k) plan when you are
67 years old?
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292 Chapter 6 The Mathematics of Borrowing & Saving

Retirement Plan In Exercises 15–18, use the information below. (See Example 5.)

You retire at age 67. Your 401(k) retirement plan has a balance of
$1 million and compounds interest monthly.

15. The account earns 6%, and you want an income of $75,000 a year.
a. How much have you withdrawn in total from your account after 10 years?
b. How much interest has the account earned after 10 years?
c. After 10 years, what is the balance in your account?

16. The account earns 8%, and you want an income of $90,000 a year.
a. How much have you withdrawn in total from your account after 20 years?
b. How much interest has the account earned after 20 years?
c. After 20 years, what is the balance in your account?

17. The account earns 5%. How many years can the account support
withdrawals of $60,000 a year?

18. The account earns 5%. How many years can the account support
withdrawals of $85,000 a year?

Defined Benefit Plan In Exercises 19 and 20, use the

information below. (See Example 6.)

You are 55 years old and you have worked for a government
municipality for 30 years. Your defined benefit retirement plan
will pay you 2% of your average income for the last 3 years for
each year you have worked. Your average annual income during
the past 3 years is $72,000. Suppose you live to age 85.

19. Your salary will increase by 1% each year. At what age should you retire to
receive the greatest retirement income?

20. Your salary will increase by 3% each year. At what age should you retire to
receive the greatest retirement income?

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6.4 Savings & Retirement Plans 293

Extending Concepts
Savings Goals In Exercises 21 and 22, use the information below.
w.
For an increasing annuity, the monthly deposit M that you
must make for n months, at an annual percentage rate of
r (in decimal form), to achieve a balance of A is
r

M = ——.
( ) A —
12
r n
(1 + ) − 1
—
12

21. You start saving for retirement at age 25. You want to have
$1 million when you retire in 42 years. You invest in a
savings plan that earns 6%, compounded monthly.
a. How much should you deposit each month?
ch
b. Suppose you wait until you are 30 to start saving. How much
more do you have to deposit each month compared to the
amount in part (a)?

22. You want to have $20,000 to help pay for your child’s college education
in 18 years. You invest in a savings plan that earns 4.8%, compounded monthly.
a. How much should you deposit each month?
b. Suppose you want to have the money in 10 years. How much more do
you have to deposit each month compared to the amount in part (a)?

Annual Percentage Yield In Exercises 23–26, use the information below.

The annual percentage yield (APY) is the rate at which an investment
increases each year. The formula for the APY of an investment with an
annual percentage rate of r that is compounded n times a year is

r n
(
APY = 1 + —
n ) − 1.

23. Find the APY for an investment that earns 6% for each compounding period.
a. Daily b. Monthly c. Quarterly
d. Semiannually e. Annually

24. Find the APY for an investment that earns 7% for each compounding period.
a. Daily b. Monthly c. Quarterly
d. Semiannually e. Annually

25. For what compounding period is the APY the same as the APR?
Explain your reasoning.

26. Which of the following earns more interest annually?

a. An investment with an APY of 6%
b. An investment with an APR of 5.9%, compounded monthly

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294 Chapter 6 The Mathematics of Borrowing & Saving

6.3– 6.4 Quiz

Buying a House In Exercises 1–4, use the information below.
You want to buy a $100,000 house. You plan to make a
$20,000 down payment.

1. Each month for 5 years, you deposit $300 into a savings account that
earns 5%, compounded monthly. After 5 years, you use the money in
the account to make the down payment.
a. How much is left in the account?
b. You leave the remaining amount from part (a) in the account.
Assuming you do not make any more deposits, how much is in
the account after 14 years?

2. You take out a home mortgage for $80,000 for 30 years. Compare
the total interest you pay for the annual percentage rates.
a. 5% b. 7%

3. You take out a home mortgage for $80,000 for 30 years at 5.5%. Each
month, you make the regular payment of $454.23 plus an additional $50.
a. How much sooner do you pay off the mortgage?
b. How much do you save in interest?

4. You take out a home mortgage for $80,000 for 30 years at 6%. After 5 years,
you move to a different state and sell the home for $140,250.

Expenses and Savings Related to Buying

Cost of home: $100,000 Realtor’s fee: 5% of cost of home
Down payment: $20,000 Home insurance: $600 per year
Mortgage: $80,000 Property tax: 1% of cost of home per year
Monthly payment: $479.64 Home repairs: $6000
Closing costs: 5% of cost of home Income tax savings (interest): $5000

Compare the costs of buying the home and renting a

comparable home for $550 per month. Assume that if
you did not buy the home, you could have invested the
down payment and earned $4000 in interest.

Retirement Plan In Exercises 5 and 6, use the

information below.
You start your working career when you are 22 years old.
Each month, you deposit $150 into a retirement plan that
earns 6%, compounded monthly. You continue making
deposits into the plan until you are 67 years old.

5. Find the balance in the account.

6. How many years can the account support withdrawals of $70,000 a year?

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Chapter 6 Summary 295

Chapter 6 Summary

Section Objectives How does it apply to you?

It is important to know all the terms and conditions of a loan
Read promissory notes and find
so that you repay the correct amount on time. (See Examples
Section 1

due dates.
1 and 2.)

When you obtain a loan, you normally must pay a cost of

Find the cost of credit for a loan.
credit in addition to the loan proceeds. (See Example 3.)

Find the annual percentage rate for The annual percentage rate (APR) is the rate at which interest
a loan. is calculated. (See Example 6.)

An amortization table shows how the balance of a loan

Create an amortization table.
decreases. (See Examples 1 and 2.)
Section 2

To reduce the amount of interest you pay, you should pay

Analyze the cost of buying on
more than the minimum payment on your credit card bill.
credit.
(See Example 3.)
You can compare the indebtedness of households in the
Analyze credit in the
United States in different years by using population size and
United States.
the CPI. (See Example 6.)

The rate and term of a home mortgage affect the size of your
Compare rates and terms for a
monthly payment and the total amount of interest that you
home mortgage.
Section 3

pay. (See Examples 1 and 2.)

Analyze the effect of making You can pay off your mortgage early and save in interest
principal payments. when you make additional payments. (See Example 3.)

You should consider all the costs and savings involved

Compare the costs of buying and
in buying and renting to determine what is best for you.
renting.
(See Example 5.)

Find the balance in a savings You can find how much is in a savings account after a period
account. of time. (See Examples 1 and 2.)
Section 4

You can find the balance in an account in which you make

Find the balance in an increasing
repeated deposits and determine how much you will have in
annuity.
the account when you retire. (See Examples 3 and 4.)
You can determine how much you can withdraw annually
from an interest-earning account when you retire. You can
Analyze a decreasing annuity.
also determine the age at which you should retire to
maximize your retirement income. (See Examples 5 and 6.)
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296 Chapter 6 The Mathematics of Borrowing & Saving

Chapter 6 Review Exercises

Section 6.1
Payday Loans Payday loans are short-term loans that are typically due the next
time you receive a paycheck. The tables show rates at two different payday loan
companies. In Exercises 1–6, use the tables.
Term: 30 days
You Receive Fee Write the Check For Amount Fees Total
Amount 14-day $100 $18.62 $118.62
Total of Payments $200 $37.24 $237.24
Financed Finance Charge
$300 $55.86 $355.86
$100.00 $17.65 $117.65 $400 $74.48 $474.48
$500 $93.10 $593.10
$150.00 $26.48 $176.48 $600 $111.72 $711.72
$700 $130.34 $830.34
$200.00 $35.30 $235.30
$800 $148.96 $948.96
$900 $167.58 $1067.58
$255.00 $45.00 $300.00
$1000 $186.20 $1186.20

1. You obtain a 30-day payday loan on September 14.

What is the due date?

2. You obtain a $100 payday loan with a 14-day

term. How much is due at the end of 14 days?

3. Complete the Truth in Lending disclosure

for a $255 payday loan with a 14-day term.

Loan Proceeds $ Annual Percentage Rate â

Other Charges à $
Amount Financed $ Payable in 1 payment
Finance Charge à $ with a term of .
Total Amount Due $

4. Complete the Truth in Lending disclosure for a $500 payday loan with a
30-day term.

Loan Proceeds $ Annual Percentage Rate â

Other Charges à $
Amount Financed $ Payable in 1 payment
Finance Charge à $ with a term of .
Total Amount Due $

5. Find the APR for a $200 payday loan with a term of (a) 14 days and (b) 30 days.

6. Does the APR for a 30-day loan change as the amount increases? Explain.

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Chapter 6 Review Exercises 297

Section 6.2
Home Equity Loans Home equity loans are loans in which a homeowner
borrows money using the equity of the home as collateral. The table shows
home equity loan rates and terms. In Exercises 7–11, use the table.

Home Equity Loans

Loan Type APR Term

Home equity-subordinate mortgage (0–60 months) 5.24 60
Home equity-subordinate mortgage (61–84 months) 5.49 84
Home equity-subordinate mortgage (85–144 months) 5.99 144
Home equity-subordinate mortgage (145–180 months) 6.49 180

7. You choose a term of 144 months for a $50,000 home equity loan.
What is the monthly payment?

8. Create an amortization table showing how the balance of the

loan decreases.

9. What is the cost of credit for the loan?

10. When is the remaining balance less than one-half of the original
loan amount?

11. You receive a 0.25% reduction in APR by initiating automatic monthly

payments from your checking account. How much do you save over the
term of the loan by doing this?

12. Comparing Loans Your credit score of 660 is too low to receive the loan
above. You use the Internet to find the home equity loan options shown.
You receive the APR discount, and the term is 10 years. How much more
do you pay in interest with Radiance Bank than with Sunny Bank?

Results (4) Calculator

Print
Loan Credit Fees and
Type Lender Score APR Conditions
$50K Any Bank 0.25% APR disc w/auto
home
Contact 600-850 10.04 debit; $500 fee;
equity loan Posted: 03/02/12 $10,000 min
$50K My Bank
home
Contact 700-850 5.49
equity loan Posted: 03/02/12
$50K Sunny Bank 0.25% APR disc w/auto
home
Contact 660-850 7.14 debit; $5,000 min
equity loan Posted: 03/02/12
$50K Radiance Bank 0.25% APR disc w/auto
home
Contact 660-850 7.34 debit; $5,000 min
equity loan Posted: 03/02/12

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298 Chapter 6 The Mathematics of Borrowing & Saving

Section 6.3
Home Mortgage In Exercises 13–17, use the information below.
You take out a home mortgage for $170,000 for 30 years at 5%. The regular
monthly payment is $912.60.

13. Compare the total interest you pay to the total interest of a home mortgage for
$170,000 for 30 years at 7%.

14. Compare the total interest you pay to the total interest of a home mortgage for
$170,000 for 15 years at 5%.

15. Each month, you make the regular payment of $912.60 plus an additional $50.
a. How much sooner do you pay off the mortgage?
b. How much do you save in interest?

16. The monthly payment for a 5-year balloon mortgage for $170,000 is equal to that of a
30-year mortgage with an annual percentage rate of 5%. Find the balloon payment and
the total interest that you pay.

17. After 5 years, you move to a different state and sell the house for $253,350.

Expenses and Savings Related to Buying

Cost of home: $205,000 Realtor’s fee: 5% of cost of home
Down payment: $35,000 Home insurance: $1000 per year
Mortgage: $170,000 Property tax: 1.5% of cost of home per year
Monthly payment: $912.60 Home repairs: $10,000
Closing costs: 5% of cost of home Income tax savings (interest): $8000

Compare the costs of buying the home and renting a comparable home for
$1200 per month. Assume that if you did not buy the home, you could have
invested the down payment and earned $8000 in interest.

18. Housing Bubble Describe what happens to the prices of homes during a bubble.
What happens when the bubble bursts?

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Chapter 6 Review Exercises 299

Section 6.4
Savings Account In Exercises 19 and 20, suppose that you deposit $3000 into a
savings account that earns 4.5%, compounded monthly.
19. Find the balance in the account after each time period.
a. 16 years b. 32 years

20. Your friend deposits $2500 into a savings account that earns 6.5%, compounded
monthly. Which account has the greater balance after 10 years?

Retirement Plan In Exercises 21 and 22, use the information below.

You start your working career when you are 22 years old.
Each month, you deposit $200 into a retirement plan that
earns 8%, compounded monthly. You continue making
deposits into the plan until you are 67 years old.

21. Find the balance in the account.

22. You want an income of $100,000 a year.

a. How much have you withdrawn in total from your account
after 10 years?
b. How much interest has the account earned
after 10 years?
c. After 10 years, what is the balance in your account?

23. Gift for the Future You deposit $5

into a savings account that earns 6%,
compounded annually. You stipulate
that the balance will be divided evenly
among your living heirs in 500 years.
Find the balance in the account after
each time period.
a. 50 years b. 100 years
c. 150 years d. 200 years
e. 250 years f. 500 years

24. Defined Benefit Plan You are 55 years old

and you have worked for a government
municipality for 30 years. Your defined benefit
retirement plan will pay you 2% of the
average income for the last 3 years for each
year you have worked. Your average annual
income during the past 3 years is $60,000. This
will increase by 3.5% each year. Suppose you
live to age 85. At what age should you retire to
receive the greatest retirement income?

Copyright © Larson Texts, Inc. All rights reserved.

7 The Mathematics of
Patterns & Nature

7.1 Linear Patterns

Recognize and describe a linear pattern.
Use a linear pattern to predict a future event.
Recognize a proportional pattern.

7.2 Exponential Patterns

Recognize and describe an exponential pattern.
Use an exponential pattern to predict a future event.
Compare exponential and logistic growth.

7.3 Quadratic Patterns

Recognize and describe a quadratic pattern.
Use a quadratic pattern to predict a future event.
Compare linear, quadratic, and exponential growth.

7.4 Fibonacci & Other Patterns

Recognize and describe the Fibonacci pattern.
Analyze geometric Fibonacci patterns.
Recognize and describe other patterns in mathematics.

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Seal Call Success
1.1
1.0
0.9

Probability of success
0.8
0.7
0.6
0.5
0.4
Pup’s response
0.3 Call à move
0.2 Call only
Move only
0.1 None
0.0
0 5 10 15 20
Mother’s call rate (calls/min)

Example 6 on page 317 compares a mother seal’s call rate with

the probability that the mother will relocate her baby after
going to sea. What is the mother’s and baby’s best strategy?

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302 Chapter 7 The Mathematics of Patterns & Nature

7.1 Linear Patterns

Recognize and describe a linear pattern.
Use a linear pattern to predict a future event.
Recognize a proportional pattern.

Recognizing a Linear Pattern

A sequence of numbers has a linear pattern when each successive number
Study Tip increases (or decreases) by the same amount.
Linear patterns involving
two variables are called Recognizing a Linear Pattern
linear because when one
variable is graphed in Anthropologists use tables like those at the left to estimate the height of a person
relationship to the other based on part of the person’s skeleton.
variable, the result is a line.
a. Does the table relating the length of a man’s femur (upper leg bone) to the
man’s height represent a linear pattern?
A B b. The femur length of a Roman soldier is 18 inches. What was the height of
Femur Height the Roman soldier?
1 Length (in.) (in.)
2 14 58.32 SOLUTION
3 15 60.20 a. To determine whether the table represents a linear pattern, find the differences
4 16 62.08 between
betwee consecutive terms.
5 17 63.96 Men’s Height
6 18 65.84 A B
80
7 19 67.72 Femur Height
8 20 69.60 1 Length
Le (in.) (in.) 75
Height (inches)

9 21 71.48 2 14 58.32
1.88 70
10 22 73.36 3 15 60.20
1.88
11 23 75.24 4 16 62.08 65
1.88
12 24 77.12 5 17 63.96
1.88 60
6 18 65.84
8 19 67 72 55
Each time the femur length increases 50
by 1 inch, the height of the man 10 15 20 25
increases by 1.88 inches. So, the Femur length (inches)
pattern is linear.

b. From the table, an 18-inch femur corresponds to a height of about

66 inches. In other words, the Roman soldier was about 5' 6".

Checkpoint Help at

For women, femur length and height are related as follows.

Height in inches = 1.95(femur length) + 28.7
c. Use a spreadsheet to make a table for this formula.
d. Use the spreadsheet to graph the data in the table and verify that the points
on the graph lie on a line.

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7.1 Linear Patterns 303

Recognizing a Linear Pattern

The table relates a man’s shoe size to the length of his foot.
A B
Foot
Length Shoe
1 (inches) Size
2 9.30 6.0
3 9.47 6.5
4 9.64 7.0
5 9.81 7.5
6 9.98 8.0
7 10.15 8.5
8 10.32 9.0
9 10.49 9.5
10 10.66 10.0
To measure your foot, trace it on a piece of paper. Mark the front and back of
11 10.83 10.5
your foot. Then measure the length.
12 11.00 11.0
13 11.17 11.5 a. Does the table represent a linear pattern? Explain.
14 11.34 12.0
b. Use a spreadsheet to graph the data. Is the graph linear?
15 11.51 12.5
16 11.68 13.0 SOLUTION
17 11.85 13.5
a. To determine whether the table represents a linear pattern, find the
18 12.02 14.0
differences between consecutive terms.
19 12.19 14.5
20 12.36 15.0
21 A B U.S. Men’s Shoe Size
Foot 16
Length
L Shoe
1 (inches) Size 14
2 9.30 6.0 12
0.17
Shoe size

3 9.47 6.5
0.17 10
4 9.64 7.0
0.17
5 9.81 7.5 8
0.17
6 9.98 8.0
9 10 15 85 6

Notice that each time the foot length 4

increases by 0.17 (about 1/6) inch, 8 9 10 11 12 13
the shoe size increases by a half size. Foot length (inches)
So, the pattern is linear.

b. The points on the graph do lie on a line. So, the graph is linear.

Checkpoint Help at

Use the table at [Link] that relates a woman’s shoe size to

the length of her foot.
c. Does the table represent a linear pattern? Explain.
d. Use a spreadsheet to graph the data. Is the graph linear?

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304 Chapter 7 The Mathematics of Patterns & Nature

Using a Linear Pattern to Predict a Future Event

One common use of linear patterns is predicting future events.

Predicting a Future Event

The graph shows
the ages of Ages of U.S. Women at First Marriage
American women 28

at the time of their

26
first marriage from
1960 through 24

Age
2010. Use the
graph to predict 22
the age in 2020.
20

0
1950 1960 1970 1980 1990 2000 2010 2020
SOLUTION Year
The pattern looks
roughly linear. One
way to estimate the Ages of U.S. Women at First Marriage
age in 2020 is to 28
draw a “best-fitting
line” to approximate 26
the data. Then use
the line to estimate 24
Age

the age in 2020. In 2020, the

22
From the graph, age will be
20 about 27.5.
it appears that the
age of women at
0
their first marriage 1950 1960 1970 1980 1990 2000 2010 2020
in 2020 will be Year
about 27.5.

Checkpoint Help at

Use the graph below to predict the marriage rate for women in the United States
Study Tip in 2020. How do these data relate to the data in Example 3?
The procedure described in
Example 3 is called linear Marriage Rate for U.S. Women
regression. It is a commonly
unmarried women

100
used procedure in statistics.
Rate per 1000

80
60
40
20
0
1960 1970 1980 1990 2000 2010 2020
Year

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7.1 Linear Patterns 305

Describing a Linear Pattern in Nature

The figure shows the annual northward migration of Canada Geese. Describe any
linear patterns that you see in the figure.

April 30
April 20

April 10

March 30

March 20

March 10

March 1 Feb. 20
0
Feb. 10

200 mi

Migration line
Mi

SOLUTION
Through the central United States, the migration appears to be moving north at a
rate of about 150 miles every 10 days.

Feb 10 Feb 20 Mar 1 Mar 10 Mar 20 Mar 30 Apr 10 Apr 20 Apr 30

0 mi 130 mi 270 mi 420 mi 630 mi 760 mi 900 mi 1040 mi 1200 mi

Checkpoint Help at

In this book
book, Serge Dedina The longest known migration of a mammal is that of the gray whale. It
discusses the conservation of travels the 6000 miles between Baja California, Mexico, and the Bering Sea
the gray whale in Baja California, each spring and fall. Traveling at a rate of 4 miles per hour, how long does it
Mexico. take a gray whale to migrate each spring?

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306 Chapter 7 The Mathematics of Patterns & Nature

Recognizing a Proportional Pattern

A pattern with two variables is proportional when one of the variables is a
constant multiple of the other variable. Proportional patterns are also linear.

Recognizing a Proportional Pattern

You hang different weights from a spring. You then measure the distance the
spring stretches.
a. Describe the pattern. Is the distance the spring stretches proportional to the weight?
b. How much does the spring stretch when you hang 6 pounds from it?
0 INCH 1

Throughout human history,

2
3

most discoveries have occurred

4

because humans observed

5

patterns. From the patterns, they

6

then formulated laws of nature.

The law illustrated in Example 5 0 in. 3
0 in. 3 in. 492 in. 6 in.
is called Hooke’s Law, after the 2

English scientist Robert Hooke.

The law states that the distance a SOLUTION Spring Stretching
spring stretches is proportional to a. You can see that the 7
Distance stretched (inches)

the weight hanging on the spring. distance the spring 6

stretches is 3/2 times
5
the weight in pounds.
4
3 3 3
—×0=0 —×1=— 3
2 2 2
2
3 3 9
—×2=3 —×3=— 1
2 2 2
0
0 1 2 3 4 5 6
3
—×4=6 Weight (pounds)
Distance 2
Weight
stretched
(pounds)
(inches) So, the distance the spring stretches is proportional to the weight.
0 0 b. When you hang 6 pounds from the spring, it will stretch (3/2 × 6), or 9 inches.
3
1 —
4 Checkpoint Help at
3
2 —
2 The distance that a spring stretches depends on its elasticity. Data for a
9 different spring are shown in the table.
3 —
4
c. Is this spring more or less elastic than the spring in Example 5? Explain.
4 3
d. How much will this spring stretch when you hang 7 pounds from it?

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7.1 Linear Patterns 307

Recognizing a Proportional Pattern

Is the following statement true? Explain your reasoning.
As a human grows, its skull height is proportional to its total height.

Adult
8 heads at 9 in. 9 in. 9 in. 7.5 in. 7 in. 6.5 in. 6 in.
15 years
7.5 heads at 9 in.

Adult 15 10 5 3 1
years years years years year
10 years
7 heads at 7.5 in.

5 years
6 heads at 7 in.

3 years
5 heads at 6.5 in.

1 year
4 heads at 6 in.

Most adult humans are between

6.5 and 8 heads tall. Comic
action heros, however, are
often 9 heads tall.
SOLUTION
Human Body Proportions
This is not true of humans.
Total height (inches)

80
A baby’s skull height is Proportional line
about one-fourth of its total 60
of 1-to-8 ratio
height. An adult’s skull 40
height is only about
one-eighth of its total height. 20

In the graph, notice that the 0

0 2 4 6 8 10
total height is not a constant
multiple of the skull height. Skull height (inches)

Checkpoint Help at

Baby reptiles are miniature versions of the adults. So, for reptiles, it is
true that “as a reptile grows, its skull length is proportional to its
total length.” Some horned lizards can grow up to a
length of 8 inches. Use the photo to
estimate the ratio of the lizard’s
skull length to its total length.

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308 Chapter 7 The Mathematics of Patterns & Nature

7.1 Exercises
Freshwater The table shows the pressures at various depths of
Depth Pressure (pounds
freshwater. In Exercises 1– 4, use the table. (See Examples 1 and 2.)
(feet) per square inch)
1. Does the table relating depth and pressure represent a linear
pattern? Explain your reasoning. 0 14.70

10 19.03
2. Use a spreadsheet to graph the data. Is the graph linear?
20 23.36
3. How much does the pressure increase for every foot of depth?
Explain your reasoning. 30 27.69

4. Write a formula that relates the depth in feet to the pressure in 40 32.02
pounds per square inch.
50 36.35
Seawater For seawater, depth and pressure are related as follows.
60 40.68
Pressure in pounds per square inch = 0.445(depth in feet) + 14.7
70 45.01
In Exercises 5–8, use this formula. (See Examples 1 and 2.)
5. Use a spreadsheet to make a table for the formula. Then graph the 80 49.34
data and verify that the points on the graph lie on a line.
90 53.67
nd
6. The recreational diving limit for a scuba diver is 130 feet. Find
the pressure at this depth. 100 58.00

eltic Sea.
7. The wreck of the Lusitania lies about 300 feet beneath the Celtic
Find the pressure at this depth.

tlantic Ocean.
8. The wreck of the Titanic lies about 12,500 feet beneath the Atlantic
Find the pressure at this depth.

The stern of the Titanic, pictured above, was crushed by

water pressure as it sank to the bottom of the ocean.

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7.1 Linear Patterns 309

Tree Growth The figure shows the circumference of a tree over a 4-year period.
In Exercises 9 and 10, use the figure. (See Example 3.)

2006: 18.85 in.

2007: 20.42 in.
2008: 21.99 in.
2009: 23.56 in.
2010: 25.13 in.

9. Make a scatter plot of the data. Use the scatter plot to estimate the
circumference of the tree in 2011.

10. Find the diameter of the tree for each year. Make a scatter plot showing the diameter
for each year. Use the scatter plot to predict the diameter of the tree in 2011.

( C
The formula for the diameter of a circle is d = —.
π )
11. Black-and-White Warbler The figure
shows the migration of the Black-and-white
Warbler. Describe any linear patterns that
May 30
you see in the figure. (See Example 4.)

12. Distance Traveled A Black-and-white

Warbler flies about 20 miles per day across May 20
the United States during migration.
Complete the table to estimate the distance
May 10
that the Black-and-white Warbler travels
May 1
between March 30 and each date.
(See Example 4.) April 20
April 10

Day Distance March 30

March 30 0 March 20
March 20
March 10
March 31 March 10
April 2

April 6
Migration line
April 13

April 21

May 1

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310 Chapter 7 The Mathematics of Patterns & Nature

Absorbance The figure shows light passing through a glass

container that contains a substance. Absorbance is a unitless ss Absorption takes
measure of the amount of light that a substance absorbs as place here.
light passes through it. In Exercises 13–16, (a) describe the
pattern of the absorbance values, (b) make a scatter plot
of the data, and (c) predict the next absorbance value
in the pattern. (See Examples 5 and 6.)

13. The table shows the absorbance of light with a Light in Light out
wavelength of 630 nanometers for a solution of
the food dye Blue No. 1 in a 1-centimeter glass
container at various concentrations.
Path length
Concentration (mg/L) Absorbance
14. The table shows the absorbance of light with a
0 0 wavelength of 625 nanometers for a solution of
1 0.164 the food dye Green No. 3 in a 1-centimeter glass
container at various concentrations.
2 0.328
3 0.492 Concentration (mg/L) Absorbance
4 0.656
0 0
2 0.312
15. The table shows the absorbance of light with a
wavelength of 527 nanometers for a solution of 4 0.624
the food dye Red No. 3 with a concentration 6 0.936
of 4 milligrams per liter in glass containers of
8 1.248
various path lengths.

16. The table shows the absorbance of light with a

Path length (cm) Absorbance
wavelength of 500 nanometers for a solution of
0 0 the food dye Red No. 40 with a concentration
0.2 0.088 of 5 milligrams per liter in glass containers of
various path lengths.
0.4 0.176
0.6 0.264 Path length (cm) Absorbance
0.8 0.352 0 0
0.3 0.078
0.6 0.156
17. Yellow No. 5 The absorbance of light with a
0.9 0.234
wavelength of 428 nanometers for a solution
of the food dye Yellow No. 5 in a 1-centimeter 1.2 0.312
glass container is proportional to the
concentration of Yellow No. 5. The absorbance of a solution with a concentration
of 2 milligrams per liter is 0.106. What is the absorbance of a solution with a
concentration of 5 milligrams per liter? (See Examples 5 and 6.)

18. Yellow No. 6 The absorbance of light with a wavelength of 484 nanometers for a solution
of the food dye Yellow No. 6 with a concentration of 6 milligrams per liter is proportional
to the path length. The absorbance of the solution in a 0.5-centimeter glass container is
0.162. What is the absorbance of the solution in a 1.1-centimeter glass container?
(See Examples 5 and 6.)

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7.1 Linear Patterns 311

Extending Concepts
Linear Regression in Excel In Exercises 19 and 20, use the information below.
You can use Excel to find the best-fitting line for a data set. Enter the data into a spreadsheet.
Make a scatter plot of the data. Click on the scatter plot. From the chart menu, choose “Add
Trendline.” Click on the “Options” tab. Check the box labeled “Display equation on chart.”
Click “OK.” This will add the best-fitting line and its equation to your scatter plot.

19. The data set relates the number of chirps per second for striped ground crickets and the
temperature in degrees Fahrenheit.

Chirps per second Temperature (°F) Chirps per second Temperature (°F)
20.0 88.6 15.4 69.4
16.0 71.6 16.2 83.3
19.8 93.3 15.0 79.6
18.4 84.3 17.2 82.6
17.1 80.6 16.0 80.6
15.5 75.2 17.0 83.5
14.7 69.7 14.4 76.3
17.1 82.0

y Press, 1948)
(Source: George W. Pierce, The Song of Insects, Harvard University

a. Enter the data into a spreadsheet and make a scatter plot of thee data.
uation.
b. Graph the best-fitting line on your scatter plot and find its equation.
nd.
c. Estimate the temperature when there are 19 chirps per second.
ond.
d. Estimate the temperature when there are 22 chirps per second.

20. Data were collected from a sample of 414 infants, grouped by month of birth.
egrees Fahrenheit) 6 months
The data set relates the average monthly temperature (in degrees
after the infants were born and the average age (in weeks)) at which the infants learned to crawl.
Average Average crawling Averagee Average crawling
temperature (°F) age (in weeks) temperature (°F) age (in weeks)
66 29.84 33 33.64
64
73 30.52 30 32.82
72 29.70 33 33.83
63 31.84 37 33.35
52 28.58 48 33.38
39 31.44 57 32.32
(Source: JJanette B
(S Benson, IInfant
f Behavior
B h i and Development,
dD l 1993)
a. Enter the data into a spreadsheet and make a scatter plot of the data.
b. Graph the best-fitting line on your scatter plot and find its equation.
c. Estimate the average crawling age for infants when the average temperature 6 months after they
are born is 55°F.
d. Estimate the average crawling age for infants when the average temperature 6 months after they are
born is 475°F. Is this temperature reasonable? Is your estimate reasonable? Explain your reasoning.

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312 Chapter 7 The Mathematics of Patterns & Nature

7.2 Exponential Patterns

Recognize and describe an exponential pattern.
Use an exponential pattern to predict a future event.
Compare exponential and logistic growth.

Recognizing an Exponential Pattern

A sequence of numbers has an exponential pattern when each successive number
Study Tip increases (or decreases) by the same percent. Here are some examples of
Notice the difference exponential patterns you have already studied in this text.
between linear and
exponential patterns. With • Growth of a bacteria culture (Example 1, page 152)
linear patterns, successive • Growth of a mouse population during a mouse plague (Example 3, page 154)
numbers increase or • Decrease in the atmospheric pressure with increasing height
decrease by the same (Example 2, page 175)
amount. With exponential • Decrease in the amount of a drug in your bloodstream (Example 3, page 176)
patterns, successive
numbers increase or
decrease by the same Recognizing an Exponential Pattern
percent.
Describe the Chamber 7: 1.207 cm3
pattern for
the volumes Chamber 6: 1.135 cm3
of consecutive
Chamber 5: 1.068 cm3
chambers in
the shell of Chamber 4: 1.005 cm3
a chambered
nautilus. Chamber 3: 0.945 cm3

Chamber 2: 0.889 cm3

SOLUTION
It helps to organize Chamber 1: 0.836 cm3
the data in a table.

Chamber 1 2 3 4 5 6 7

Volume (cm3) 0.836 0.889 0.945 1.005 1.068 1.135 1.207

Begin by checking the differences of consecutive volumes to conclude that

the pattern is not linear. Then find the ratios of consecutive volumes.
The exponential growth pattern 0.889 0.945 1.005
— ≈ 1.063 — ≈ 1.063 — ≈ 1.063
of the chambers in a chambered 0.836 0.889 0.945
nautilus was first recorded by 1.068 1.135 1.207
the French philosopher René — ≈ 1.063 — ≈ 1.063 — ≈ 1.063
1.005 1.068 1.135
Descartes in 1638.
The volume of each chamber is about 6.3% greater than the volume of the
previous chamber. So, the pattern is exponential.

Checkpoint Help at

Use a spreadsheet to extend the pattern in Example 1 to 24 chambers. Then make

a scatter plot of the data and describe the graph.
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7.2 Exponential Patterns 313

Describing an Exponential Pattern

From 5000 b.c.

through 1500 a.d.,
the population of
Earth followed a
growth pattern
that was roughly
exponential.
1000 B.C. Approximate Describe the growth
beginning of the Iron Age pattern in words.

1 B.C. Augustus Caesar 1000 A.D. The Song Dynasty

controlled most of the in China had about one-fifth
Mediterranean world. of the world’s population.

Population of Earth
450
423
400
Millions of people

350
301
300
250
214
200
152
150
2000 B.C. Beginning of the 108
Middle Kingdom in Egypt
100 77
39 55
50
5 7 10 14 20 28
0
5000 B.C. 4000 B.C. 3000 B.C. 2000 B.C. 1000 B.C. 0 1000 A.D. 2000 A.D.
Year

SOLUTION
Begin by finding the ratios of consecutive populations.
7 10 14 20 28
3000 B.C. Stonehenge is built — = 1.40 — ≈ 1.43 — = 1.40 — ≈ 1.43 — = 1.40
in England. 5 7 10 14 20
39 55 77 108 152
— ≈ 1.39 — ≈ 1.41 — = 1.40 — ≈ 1.40 — ≈ 1.41
28 39 55 77 108
214 301 423
— ≈ 1.41 — ≈ 1.41 — ≈ 1.41
152 214 301

From these Earth population estimates, you can say that Earth’s population was
increasing by about 40% every 500 years.

Checkpoint Help at

Did the growth pattern described in Example 2 continue through the next
4000 B.C. Civilization begins to 500 years, up through the year 2000? If not, why didn’t the pattern continue?
develop in Mesopotamia.
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314 Chapter 7 The Mathematics of Patterns & Nature

Using an Exponential Pattern to Predict a Future Event

Predicting a Future Event

It is estimated that in 1782 there were about 100,000 nesting bald eagles in the
United States. By the 1960s, this number had dropped to about 500 nesting pairs.
This decline was attributed to loss of habitat, loss of prey, hunting, and the use of
the pesticide DDT.
The 1940 Bald Eagle Protection Act prohibited the trapping and killing of
the birds. In 1967, the bald eagle was declared an endangered species in the
United States. With protection, the nesting pair population began to increase, as
shown in the graph. Finally, in 2007, the bald eagle was removed from the list of
endangered and threatened species.

The mission of the U.S. Fish and

Wildlife Service is “to work with Bald Eagle Nesting Pairs in Lower 48 States
others to conserve, protect, 12,000
and enhance fish, wildlife, and 9789
ing pairs

plants and their habitats for 10,000

the continuing benefit of the

Number of nesting

8,000
American people.” 6846
6,000 5094

4,000 3399
1875
2,000 1188

0
1976 1981 1986 1991 1996 2001 2006 2011
Year

Assume that this recovery pattern continued. Estimate the number of nesting pairs
of bald eagles in the lower 48 states in 2011.

SOLUTION
Begin by finding the ratios of consecutive populations.
Study Tip 1875 3399 5094
Using a computer and an — ≈ 1.58 — ≈ 1.81 — ≈ 1.50
1188 1875 3399
exponential regression
6846 9789
program, you can find that — ≈ 1.34 — ≈ 1.43
the best estimate for the 5094 6846
increase (every 5 years) for
the data in Example 3 From the data, it appears that the population increased by about 50% every
is 52.8%. 5 years. So, from 2006 to 2011, you can estimate that the population increased
to 1.5(9789), or about 14,700 nesting pairs.

Checkpoint Help at

Suppose the recovery pattern continued for another 5 years. Predict the number of
nesting pairs in 2016.

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7.2 Exponential Patterns 315

Predicting a Future Event

Discuss the following graph prepared by the World Wildlife Fund. What
exponential pattern can you see in the graph?

SOLUTION
From the graph, the estimated tiger population appears to be decreasing with an
exponential pattern, as follows.

1985 1990 1995 2000 2005

22,000 12,500 6000 5000 3800

12,500 6000 5000 3800

— ≈ 0.568 — = 0.480 — ≈ 0.833 — = 0.760
22,000 12,500 6000 5000

Although the rate of decrease in each 5-year period varies, you need to
remember that these data are difficult to collect and consequently are only an
approximation. Even so, it appears that the tiger population is decreasing by
almost 70% every 5 years.

Checkpoint Help at

Estimate the percent of remaining tiger habitat from 1985 through 2010.
Describe the pattern.

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316 Chapter 7 The Mathematics of Patterns & Nature

Comparing Exponential and Logistic Growth

Exponential growth can only occur for a limited time in nature. Eventually, the
quantity that is growing reaches physical boundaries. The resulting growth is
called logistic growth.

Comparing Exponential and Logistic Growth

The graph shows the growth of a culture of yeast cells that is introduced into
a container of grape juice. Describe the growth.

Growth of a Culture in Grape Juice

8
Maximum sustainable population
Number of yeast cells

7
6 Decreasing
(millions)

Yeasts are single-celled 5 growth rate

organisms. Most reproduce by 4
asexual budding (splitting to form 3 One-half of maximum
two new yeast cells). When yeast Exponential sustainable population
2
cells lack oxygen, they die and growth
1
produce alcohol. This process is
0
called fermentation. 0 2 4 6 8 10 12 14 16 18
Time (days)

SOLUTION
During the exponential growth stage, most of the energy of the yeast culture is
devoted to reproducing itself. To do this, it uses the natural sugar that is in the
grape juice. Wine fermentation has two stages called aerobic (with oxygen) and
anaerobic (without oxygen) fermentations. After a few days in the first stage,
most of the sugar and other nutrients in the grape juice are depleted. At this point,
the oxygen source is removed and the growth rate of the yeast starts to decrease.
Eventually, the yeast cells die (this is not shown in the graph). So, the population
is limited by the food and oxygen available.

Checkpoint Help at

What is your opinion about the sustainable population level of humans on Earth?
Do you agree with Thomas Malthus, who predicted that the human population will
grow exponentially, creating a permanent class of poor? Explain your reasoning.

“1. Population is necessarily limited by the means of subsistence.

2. Population invariably increases where the means of subsistence increase,
Thomas Malthus is known for his
unless prevented by some very powerful and obvious checks.
theories on population growth.
He claimed that populations are 3. These checks, and the checks which repress the superior, power of
checked by famine, disease, and population, and keep its effects on a level with the means of subsistence,
widespread mortality. are all resolvable into moral restraint, vice and misery.” Thomas Malthus

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7.2 Exponential Patterns 317

Comparing Logistic Patterns

The graph shows four different strategies used by mother and baby fur seals to
locate each other after the mother returns from hunting. Discuss the strategies.
Which is more effective?

Seal Call Success

1.1
1.0
0.9

*Probability of success
0.8
0.7
0.6
0.5
0.4
Pup’s response
0.3 Call à move

*P
0.2 Call only
Move only
0.1 None
0.0
0 5 10 15 20

After a fur seal pup is born, its Mother’s call rate (calls/min)
mother nurses it for about 4 months.
During this time, the mother makes Probability is discussed in Chapter 8.
frequent trips to sea to forage for SOLUTION
food. Each time a mother returns Here are some general observations about the graph.
from hunting, she has to locate her
pup in the colony, which can have 1. In each strategy, the mother has more success locating her pup when she
thousands of baby and adult seals. increases her bark rate per minute.
2. As the bark rate increases, the probability of success increases logistically.
3. If the mother calls at a rate of 20 barks per minute, she is almost certain to
locate her pup, regardless of the pup’s response.
Here are some observations relative to the pup’s response.
• The pup calls and moves. This is the best strategy for the pup. By calling and
moving, there is a good chance that its mother will find it.
• The pup only calls. This is the second-best strategy for the pup. By calling,
there is still a good chance that its mother can hear it through the noise of the
colony.
• The pup only moves. This is not a good strategy for the pup. If its mother is
calling at the rate of only 5 barks per minute, there is only a 60% chance that
its mother will find it.
• The pup does nothing. This is the worst strategy for the pup. A pup who is too
weak to call or move does not have a good chance of being found.

Checkpoint Help at

The above graph applies each time the mother goes to sea for food. Explain
how the pup’s chance for survival changes with multiple trips by the mother.

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318 Chapter 7 The Mathematics of Patterns & Nature

7.2 Exercises
Water Hyacinth An invasive species of water hyacinth is spreading over the surface of
a lake. The figure shows the surface area covered by the water hyacinth over a 3-week
period. In Exercises 1– 4, use the figure. (See Examples 1 and 2.)

Week 0: 500 ft2

Week 1: 700 ft2

Week 2: 980 ft2

Week 3: 1372 ft2

1. Is the pattern linear? Explain your reasoning.

2. At what rate is the surface area covered by the water hyacinth increasing?

3. Use a spreadsheet to extend the pattern to 20 weeks. Then make a

scatter plot of the data and describe the graph.

4. The surface area of the lake is about 800,000 square feet. How many
weeks does it take the water hyacinth to cover the entire lake?

5. Invasive Species An invasive species of water plant covers

1500 square feet of the surface of a lake. The lake has a
surface area of about 2,500,000 square feet. The surface area
covered by the plant increases by 60% each week. Make
a table and a scatter plot showing the surface area covered
by the plant until the plant covers the entire lake.
(See Examples 1 and 2.)

6. Invasive Species Suppose in Exercise 5 that the surface

area covered by the plant increases by only 20% each
week. How much longer does it take the plant to cover
the entire lake? (See Examples 1 and 2.)

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7.2 Exponential Patterns 319

Rabbits A rabbit population is introduced to a new area. The graph shows the growth
of the rabbit population. In Exercises 7–12, use the graph. (See Example 3.)

Growth of a Rabbit Population

1600

1400 1342

1200
200
Number of rabbits

1000
000
839
800

600 524

400 328
205
200 128
50 80
0
0 1 2 3 4 5 6 7 8
Year

7. What does the population for year 0 represent?

8. At what rate is the rabbit population increasing?

9. Suppose the population growth continued for another year. Predict the
number of rabbits in year 8.

10. Suppose the population growth continued for another 3 years. Predict the
number of rabbits in year 10.

11. When does the rabbit population exceed 3000?

12. When does the rabbit population exceed 6000?

13. Population Growth A rabbit population grows exponentially over a

10-year period. The population in year 3 is 150. The population in
year 4 is 204. Predict the number of rabbits in year 10. (See Example 3.)

14. Disease Outbreak The outbreak of a disease causes a rabbit population on

to decrease exponentially over a 6-year period. The population in yearr 2
is 1200. The population in year 3 is 960. Predict the number of rabbitss in
year 6. (See Example 4.)

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320 Chapter 7 The Mathematics of Patterns & Nature

Trout A lake is stocked with 200 trout. The graph shows the growth of the trout
population. In Exercises 15–18, use the graph. (See Example 5.)

15. What is the maximum

sustainable population? Growth of a Trout Population
4500
Explain your reasoning.
4000 3820 3944
3684
16. Make a table that shows 3459 3899
3500
the change in the number 3113

Number of trout
3000
of trout for each year. 2633
Discuss any trends. 2500
2056
2000
17. Make a table that 1469
1500
shows the percent
change in the 966
1000
number of trout for 595
500 200
each year. Discuss 350
any trends. 0
0 1 2 3 4 5 6 7 8 9 10 11 12
Year
18. Make a table comparing
the number of trout for
each year in the graph to the number of trout each year if the trout population
grew exponentially by 60% each year. Why is exponential growth unrealistic
in this situation?

Competing Species The graphs show the growth of the populations of two competing
species of fish when they are released into separate ponds and when they are released
into the same pond. Assume all the ponds are the same size and have the same
resources. In Exercises 19 and 20, use the graphs. (See Example 6.)

Growth of Populations in Growth of Populations in

Separate Ponds the Same Pond
1600 1600
Species A
1400 1400
Species A
Number of fish
Number of fish

1200 1200
Species B
1000 1000

800 800

600 600

400 400
Species B
200 200

0 0
0 5 10 15 20 0 5 10 15 20
Year Year

19. Compare the growth of the populations of the two species when they are released
into separate ponds.

20. Compare the growth of the populations of the two species when they are released
into the same pond.

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7.2 Exponential Patterns 321

Extending Concepts
Logistic Growth Rate In Exercises 21–24, use the information below.
The formula for the logistic growth rate is

r = r0 × 1 − ———
( population size
maximum sustainable population )
where r0 is the intrinsic growth rate in decimal form.

21. The population of squirrels in a forest is growing logistically. The intrinsic growth rate is 40%
per year, and the maximum sustainable population is 5000. Find the rate at which the population
is growing when the population reaches (a) 100, (b) 2000, and (c) 4500.

22. The population of raccoons in a forest is growing logistically. The

intrinsic growth rate is 50% per year, and the maximum sustainable
population is 2000. Find the rate at which the population is growing
when the population reaches (a) 200, (b) 1000, and (c) 1800.

23. What is the growth rate when a population is at the maximum

sustainable population? Explain.

24. Describe the growth rate when a population exceeds the maximum
sustainable population. Explain what this represents in nature.

Superexponential Growth In Exercises 25 and 26, use the information below.

A population undergoes superexponential growth when the growth rate
increases exponentially over time.

25. A population of 100 locusts is introduced to a new area. The initial growth rate is 50%
per year. Make a table comparing the population of the locusts over a 10-year period when
the growth rate remains constant (exponential) and when the growth rate increases by 20%
each year (superexponential). Then make a scatter plot comparing the two data sets.

26. A population of 50 frogs is introduced to a new area. The initial growth rate is 60% per
year. Make a table comparing the population of the frogs over a 10-year period when the
growth rate remains constant (exponential) and when the growth rate increases by 10%
each year (superexponential). Then make a scatter plot comparing the two data sets.

27. Riddle of the Lily Pad A single lily pad lies on the
surface of a pond. Each day the number of lily pads
doubles until the entire pond is covered on day 30.
On what day is the pond half-covered?

28. Mutant Plant A mutant strain of water plant covers

100 square feet of the surface of a lake. The lake has a
surface area of about 1,000,000 square feet. At the end of
each day, the surface area covered by the plant is double
what it was at the beginning of the day minus the amount
of plant cover that you clear. You can clear 5000 square
feet of plant cover in 1 day. On what day do you have
to begin clearing the plant cover to stop the plant from
spreading across the entire lake?
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322 Chapter 7 The Mathematics of Patterns & Nature

7.1–7.2 Quiz
Deer The table shows two data sets for the projected growth of a deer population in
a forest. In Exercises 1–8, use the table.

Year Set A Set B

2012 200 200

2013 224 224

2014 248 251

2015 272 281

2016 296 315

2017 320 352

2018 344 395

The deer population in the United States is estimated at

over 20 million. In most states, the population is managed
by the state’s Department of Fish and Wildlife.

1. Describe the pattern in set A. Then make

a scatter plot of the data.

2. Use set A to predict the deer population in 2022.

3. Describe the pattern in set B. Then make a

scatter plot of the data.

4. Use set B to predict the deer population in 2022.

5. Using set A, when does the deer population

exceed 500?

6. Using set B, when does the deer population

exceed 500?

7. Suppose information from a previous study

reveals that the deer population was 113 in 2007.
Which model fits these data better? Explain your reasoning.

8. Suppose the deer population is growing logistically and the maximum sustainable
population is 500 deer. Sketch a graph that illustrates this type of growth for the
deer population.

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Chapter 7 Project Math & Antibiotics 323

Math & Antibiotics

PROJECT: Are We Running Out of Antibiotics?

“In the future, historians of science may debate

whether victory over bacteria was ever within our
grasp. But it seems almost certain that the 60 or
so years after penicillin came to market will
eventually be viewed as just an interlude in the
eternal war between us and them. We are
multicelled animals of astonishing complexity
and delicacy, moving through a world in which
they vastly outnumber us. They are single-celled
New Antibacterial Approvals (1983–2012)
organisms so primitive they lack even a nucleus,
18
marvelously adapted to multiply inside us—under
Number of new antibiotics

the right circumstances, to consume our flesh and 16

poison us with their waste. For a few decades 14
we gained the upper hand through the use of
12
antibiotics, natural substances that are as toxic to
germs as germs are to us. But our ingenuity is in 10

a desperate race against their ability to reproduce. 8

More and more strains of bacteria are developing 6
biological countermeasures to antibiotics—cell
4
membranes that won’t let them in, tiny pumps
that push them back out, biochemical tweaks 2
that make them harmless. Evolution is a process 0
2

2
7

97

that has been at work on earth for hundreds of

99

00

00

01
98

19
–1

–2

–2

–2
–1

3–

millions of years; modern biological science has

83

88

98

03

08
9
19

19
19

19

20

20
been around for less than a century and a half.
Which would you bet on?” Years
Newsweek, Jeneen Interlandi

1. The number of new antibiotics that have been approved by the U.S. Food and Drug
Administration since 1983 are shown in the graph. What does this pattern show?

2. Use the Internet to find information about the number of “superbugs” that are becoming
resistant to all our known forms of antibiotics. Present your findings graphically.

3. What can we do to help slow the number of new strains of bacteria that are resistant to
all our known forms of antibiotics?

4. Do you agree with the Newsweek article that from the discovery of penicillin through
the present is simply a “blip” in time during which we gained the upper hand against
bacteria? Explain your reasoning.

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324 Chapter 7 The Mathematics of Patterns & Nature

7.3 Quadratic Patterns

Recognize and describe a quadratic pattern.
Use a quadratic pattern to predict a future event.
Compare linear, quadratic, and exponential growth.

Recognizing a Quadratic Pattern

A sequence of numbers has a quadratic pattern when its sequence of second
Study Tip differences is constant. Here is an example.
The word quadratic refers
Terms: 12 22 32 42 52 62 72
to terms of the second
degree (or squared). You 1 4 9 16 25 36 49
might remember from 49 − 36
Algebra 1 that the 1st differences: 3 5 7 9 11 13
quadratic formula is a
formula for solving second 2nd differences: 2 2 2 2 2 (Constant)
degree equations.

Recognizing a Quadratic Pattern

The dista
distance a hit baseball travels depends on the angle at which it is hit and
speed of the baseball. The table shows the distances a baseball hit at an
on the sp
angle of 40° travels at various speeds. Describe the pattern of the distances.

Speed (mph) 80 85 90 95 100 105 110 115

Distance (ft)
Distan 194 220 247 275 304 334 365 397

40í
0 ft 50 100 150 200 250 300 350

SOLUTION
SO
The distance a batter needs to
One way is to find the second differences of the distances.
hit a baseball to get a home run
depends on the stadium. In many 194 220 247 275 304 334 365 397
stadiums, the ball needs to travel
350 or more feet to be a home run. 26 27 28 29 30 31 32

1 1 1 1 1 1 (Constant)
Because the second differences are constant, the pattern is quadratic.

Checkpoint Help at

In Example 1, extend the pattern to find the distance the baseball travels when hit
at an angle of 40° and a speed of 125 miles per hour.

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7.3 Quadratic Patterns 325

Recognizing a Quadratic Pattern

The table shows the numbers of days an offshore oil well has been
leaking and the diameters (in miles) of the oil spill. (a) Describe the
pattern of the numbers of days. (b) Use a spreadsheet to graph the data
and describe the graph.

Diame
Diameter
0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
(mi)

Days
D ays 0 1.5 6.0 13.5 24.0 37.5 54.0 73.5 96.0 121.5 150.0

The Institute for Marine Mammal SOLUTION

Studies in Gulfport, Mississippi, a. One way is to find the second differences of the numbers of days.
reported that a large number of
sea turtles were found dead along 0 1.5 6.0 13.5 24.0 37.5 54.0 73.5 96.0 121.5 150.0
the Mississippi coast following
the Deepwater Horizon oil spill 1.5 4.5 7.5 10.5 13.5 16.5 19.5 22.5 25.5 28.5
of 2010.
3 3 3 3 3 3 3 3 3 (Constant)

Because the second differences are constant, the pattern is quadratic.

b. The graph is a curve that looks something like exponential growth.
However, it is not an exponential curve. In mathematics, this curve is
called parabolic.

Size of an Oil
O Spill
180
per day)
y

160
140
Days of leakage
(at 50,000 barrels p

120
100
80
60
40
20
0
0 1 2 3 4 5 6
Diameter of oil spill (miles)

Checkpoint Help at

U a spreadsheet to make various graphs, including a scatter plot and

Use
a column graph, of the data in Example 1. Which type of graph do
yyou think best shows the data? Explain your reasoning.

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326 Chapter 7 The Mathematics of Patterns & Nature

Using a Quadratic Pattern to Predict a Future Event

Predicting a Future Event

The graph
shows the Carbon Dioxide Levels
increasing in Earth’s Atmosphere

CO2 parts per million

levels of 500
carbon dioxide 450
in Earth’s
400
atmosphere.
The Mauna Loa Observatory is Use the graph 350
an atmospheric research facility to predict the 300
that has been collecting data level of carbon
related to atmospheric change 0
dioxide in 2050. 1940 1960 1980 2000 2020 2040 2060
since the 1950s. The observatory
Year
is part of the National Oceanic
and Atmospheric Administration
(NOAA). SOLUTION
The graph looks Carbon Dioxide Levels
like it has a in Earth’s Atmosphere
CO2 parts per million

slight curve 500

upward, which 450 Quadratic:
means that the 492 in 2050
400
rate of increase
is increasing. 350
Linear:
Using a linear 300 443 in 2050
regression 0
1940 1960 1980 2000 2020 2040 2060
program, the
prediction for Year
2050 is 443
parts per million.
Using a quadratic regression program, the prediction for 2050 is
492 parts per million.

Checkpoint Help at

T graph shows the results

The
oof a plant experiment with Plant Experiment
ddifferent levels of nitrogen 35
Blades of grass per pot

iin various pots of soil. The 30

vvertical axis measures the 25
nnumber of bladesdes of 20 1st harvest
ggrass that greww in 15 2nd harvest
eeach pot of soil.
il.
10
Describe the
D
5
ppattern and
0
eexplain its 0 100 200 300 400 500
meaning.
m Nitrogen (mg/L)

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7.3 Quadratic Patterns 327

Describing Lift for Airplanes

For a given wing area, the lift of an airplane (or a bird) is proportional to the
square of its speed. The table shows the lifts for a Boeing 737 airplane
at various speeds.

Speed (mph) 0 75 150 225 300 375 450 525 600

Lift (1000s of lb) 0 25 1100 225 400 625 900 1225 1600

a. Is the pattern of the lifts quadratic? Why?

b. Sketch a graph to show how the lift
increases as the speed increases.

SOLUTION
The Boeing 737 is the most widely
a. Begin by finding the second differences of the lifts.
used commercial jet in the world.
It represents more than 25% of the 0 25 100 225 400 625 900 1225 1600
world’s fleet of large commercial
jet aircraft. 25 75 125 175 225 275 325 375

50 50 50 50 50 50 50 (Constant)

Because the second differences are constant, the pattern is quadratic.

b. Notice that as the speed increases, the lift increases quadratically.

Airplane Lift
1,800,000

1,600,000

1,400,000
Lift (pounds)

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
0 100 200 300 400 500 600 700
Speed (miles per hour)

Checkpoint Help at

A Boeing 737 weighs about 100,000 pounds at takeoff.

c. Estimate how fast the plane must travel to get enough lift to take flight.
d. Explain why bigger planes need longer runways.

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328 Chapter 7 The Mathematics of Patterns & Nature

Comparing Linear, Exponential, and Quadratic Models

Conducting an Experiment with Gravity

You conduct an experiment to determine the motion of a free-falling object.
You drop a shot put ball from a height of 256 feet and measure the distance it
has fallen at various times.

Time (sec) 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Distance (ft) 0 4 16 36 64 100 144 196 256

Is the pattern of the distances linear, exponential, quadratic, or none of these?

Explain your reasoning.

SOLUTION
Earth’s gravitational attraction was Begin by sketching a graph of the data.
explained by Sir Isaac Newton’s
Law of Universal Gravitation. The Dropping a Ball
law was published in Newton’s 300
Principia in 1687. It states that the
Distance fallen (feet)

force of attraction between two 250

particles is directly proportional
200
to the product of the masses of
the two particles, and inversely 150
proportional to the square of the
distance between them. 100

50

0
0 1 2 3 4 5
Time (seconds)

• The pattern is not linear because the graph is not a line.

• The pattern is not exponential because the ratios of consecutive terms
are not equal.
• The pattern is quadratic because the second differences are equal.
0 4 16 36 64 100 144 196 256

4 12 20 28 36 44 52 60

8 8 8 8 8 8 8 (Constant)

Checkpoint Help at

A classic problem in physics is determining the speed of an accelerating object.

Estimate the speed of the falling shot put ball at the following times. Explain
your reasoning.
a. 0 sec b. 1 sec c. 2 sec d. 3 sec e. 4 sec

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7.3 Quadratic Patterns 329

Describing Muscle Strength

The muscle strength of a person’s upper arm is related to its circumference.
The greater the circumference, the greater the muscle strength, as indicated
in the table.

Circumference (in.) 0 3 6 9 12 15 18 21

Muscle strength (lb) 0 2.16 8.61 19.35 34.38 53.70 77.31 105.21

Is the pattern of the muscle strengths linear, exponential, quadratic, or none of

these? Explain your reasoning.

SOLUTION
Begin by sketching a graph of the data.
12 in.
Muscle Strength
120

100
Strength (pounds)

80

60

40
18 in.
20

0
0 3 6 9 12 15 18 21 24
Circumference (inches)

As
A in
i Example
E l 5,
5 the
h pattern is
i not linear
li or exponential.
i l By
B calculating
l l i the h
second differences, you can see that the pattern is quadratic.
A typical upper arm circumference 0 2.16 8.61 19.35 34.38 53.70 77.31 105.21
is about 12 inches for women and
13 inches for men.
2.16 6.45 10.74 15.03 19.32 23.61 27.90

4.29 4.29 4.29 4.29 4.29 4.29 (Constant)

Checkpoint Help at

Example 6 shows that the muscle strength of a person’s upper arm is proportional
to the square of its circumference. Which of the following are also true? Explain
your reasoning.
a. Muscle strength is proportional to the diameter of the muscle.
b. Muscle strength is proportional to the square of the diameter of the muscle.
c. Muscle strength is proportional to the cross-sectional area of the muscle.
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330 Chapter 7 The Mathematics of Patterns & Nature

7.3 Exercises
Football In Exercises 1–3, describe the pattern in the table. (See Examples 1 and 2.)

1. The table shows the heights of a football at various times

after a punt.

Time (sec) 0 0.5 1 1.5 2 2.5 3

Height (ft) 3 34 57 72 79 78 69

2. The table shows the distances gained by a running

back after various numbers of rushing attempts.

Rushing
0 3 6 9 12 15 18
8
attempts

Distance (yd) 0 12.6 25.2 37.8 50.4 63 75.6

3. The table shows the heights of a football at

various times after a field goal attempt.

Time (sec) 0 0.5 1 1.5 2 2.5 3

Height (ft) 0 21 34 39 36 25 6

4. P
Punt In Exercise 1, extend the pattern to find the height
of
o the football after 4 seconds. (See Example 1.)

5. PPassing a Football The table shows the heights of a football at

vvarious times after a quarterback passes it to a receiver. Use a
spreadsheet to graph the data. Describe the graph. (See Example 2.)
sp

Time
T
Ti me (sec) 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 2.25 2.5

Height (ft) 6 15 22 27 30 31 30 27 22 15 6

6. Graph Use the graph in Exercise 5 to determine how long the height
of the football increases.

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7.3 Quadratic Patterns 331

Stopping a Car In Exercises 7–10, use the graph and the information below. (See Example 3.)
Assuming proper operation of the brakes on a vehicle, the minimum stopping distance is the sum
of the reaction distance and the braking distance. The reaction distance is the distance the car
travels before the brakes are applied. The braking distance is the distance a car travels after the
brakes are applied but before the car stops. A reaction time of 1.5 seconds is used in the graph.

Stopping a Car
500

Reaction distance
400
Braking distance
Stopping distance
Distance (feet)

300

200

100

0
0 20 25 30 35 40 45 50 55 60 65
Speed (miles per hour)

7. Does the graph of the stopping distance appear to be linear

or quadratic? Explain your reasoning.

8. Does the graph of the reaction distance appear to be linear or quadratic?

Explain your reasoning.

9. Use the graph to predict the stopping distance at 90 miles per hour.

10. The braking distance at 35 miles per hour is about 60 feet. Does this
mean that the braking distance at 70 miles per hour is about 120 feet?
Explain.

Slippery Road The braking distance of a car depends on the friction between the
tires and the road. The table shows the braking distance for a car on a slippery road
at various speeds. In Exercises 11 and 12, use the table. (See Example 4.)

Speed (mph) 20 30 40 50 60 70 80

Distance (ft) 40 90 160 250 360 490 640

11. Is the pattern quadratic? Explain.

12. Graph the data in the table. Compare this graph to the graph above.

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332 Chapter 7 The Mathematics of Patterns & Nature

Gravity In Exercises 13–16, determine whether the pattern in

the table is linear, exponential, quadratic, or none of these.
Explain your reasoning. (See Examples 5 and 6.)
13. An object is dropped from a height of 50 feet on the [Link].
es.
The table shows the distances it has fallen at various times.

Time (sec) 0 0.5 1 1.5 2 2.5 3

2 2 2 2
Distance (ft) 0 — 2— 6 10 — 16 — 24
3 3 3 3

14. An object is dropped from a height of 150 feet on Venus. s.

The table shows the distances it has fallen at various times.
mes.

Time (sec) 0 0.5 1 1.5 2 2.5 3

Distance (ft) 0 3.7 14.8 33.3 59.2 92.5 133.2

15. An object is dropped from a height of 300 feet on Mars.. The table shows the heights
of the object at various times.

Time (sec) 0 1 2 3 4 5 6

Height (ft) 300 293.8 275.2 244.2 200.8 145 76.8

16. An object is dropped from a height of 1600 feet on Jupiter. The table shows the heights
of the object at various times.

Time (sec) 0 1 2 3 4 5 6

Height (ft) 1600 1556.8 1427.2 1211.2 908.8 520 44.8

17. Sign of Second Differences Graph the data in Exercises 14 and 15 on the same
coordinate plane. Compare the graphs. What appears to be the relationship between
the sign of the second differences and the corresponding graph?

18. Moon The moon’s gravitational force is much less than that of Earth. Use the table in
Exercise 13 and the table in Example 5 on page 328 to estimate how many times stronger
Earth’s gravitational force is than the moon’s gravitational force. Explain your reasoning.

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7.3 Quadratic Patterns 333

Extending Concepts
Business Data from real-world applications rarely match a linear, exponential,
or quadratic model perfectly. In Exercises 19–22, the table shows data
ata from
a business application. Determine whether a linear, exponential, orr
quadratic model best represents the data in the table. Explain
your reasoning.
19. The table shows the revenue for selling various units.

Units sold 0 40 80 120 160 200

00

Revenue $0 $186.30 $372.45 $558.38 $744.24 $930.15

30.15

20. The table shows the total cost for producing various units.

Units produced 0 40 80 120 160 200

Total cost $500.00 $572.05 $627.98 $668.03 $692.10 $700.12

21. The table shows the profit from selling various units.

Units sold 0 40 80 120 160 200

Profit −$500.00 −$385.75 −$255.53 −$109.65 $52.14 $230.03

22. The table shows the stock price of a company for various years.

Year 2007 2008 2009 2010 2011 2012

Stock price $21.56 $23.68 $26.08 $28.62 $31.62 $34.79

Activity Fold a rectangular piece of paper in half. Open the paper and
record the number of folds and the number of sections created. Repeat this
process four times and increase the number of folds by one each time. In
Exercises 23–26, use your results.
23. Complete the table.

Folds 1 2 3 4 5

Sections

24. Graph the data in Exercise 23. Determine whether the pattern is linear,
exponential, or quadratic. 2 folds
4 sections
25. Write a formula for the model that represents the data.

26. How many sections are created after eight folds?

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334 Chapter 7 The Mathematics of Patterns & Nature

7.4 Fibonacci & Other Patterns

Recognize and describe the Fibonacci pattern.
Analyze geometric Fibonacci patterns.
Recognize and describe other patterns in mathematics.

Characteristics of Fibonacci Patterns

In the Fibonacci sequence of numbers, each number is the sum of the 2 previous
Study Tip numbers, starting with 0 and 1.
The Fibonacci sequence
0+1=1 1+2=3 3+5=8 8 + 13 = 21
starts with the numbers 0
and 1. A general Fibonacci
sequence can start with 0 1 1 2 3 5 8 13 21 34
other numbers, such as
1 and 3. 1+1=2 2+3=5 5 + 8 = 13 13 + 21 = 34

Recognizing a Fibonacci Pattern

Consider a hypothetical population of rabbits. Start with one breeding pair. After
each month, each breeding pair produces another breeding pair. The total number of
rabbits each month follows the exponential pattern 2, 4, 8, 16, 32, . . .. Now suppose
that in the first month after each pair is born, the pair is too young to reproduce.
Each pair produces another pair after it is 2 months old. Describe this pattern.

SOLUTION
TION Number
Month of pairs
Red pair is too young to produce.
1 1

Red pair produces blue pair.

2 1

Leonardo of Pisa was Red pair produces

also known as Leonardo green pair
3 2
Fibonacci. He was an Italian
mathematician who is credited
Red pair produces Blue pair
with spreading the Hindu- orange pair. produces purple
Arabic numeral system in 4 pair. 3
Europe. He did this through his
book Liber Abaci, in which he
used the Fibonacci sequence 5 5
as an example.

The number of pairs follows the Fibonacci pattern, not an exponential pattern.

Checkpoint Help at

Enter the total number of rabbits for each month in Example 1 (2, 2, 4, 6, 10, . . .)
into a spreadsheet. Make a scatter plot of the data. Then compare the scatter plot
with the exponential pattern 2, 4, 8, 16, 32, . . ..

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7.4 Fibonacci & Other Patterns 335

The Fibonacci sequence has captivated people’s imaginations for centuries.

The
T Fibonacci Association meets regularly to share ideas about the Fibonacci
sequence.
s One way to describe the sequence is, “It looks at itself, it looks at its
most
m recent past, puts them together, and evolves to the next number.”

Recognizing a Fibonacci Pattern

Look
L at the X-ray of the human hand. Describe how the Fibonacci sequence is
related
re to the X-ray.

Many people have written

about the occurrence of
Fibonacci numbers in nature.
In The (Fabulous) Fibonacci
Numbers, math educators SOLUTION
Alfred Posamentier and Ingmar By looking at the lengths of the bones in the X-ray, you can observe part of the
Lehmann describe how the Fibonacci sequence.
Fibonacci numbers occur in
dozens of different patterns in
the natural world.

5 3 2 1

Checkpoint Help at

The triangle of numbers shown is

1
called Pascal’s Triangle, after the
French mathematician Blaise Pascal. 1 1
1 2 1
a. Describe the pattern in
Pascal’s Triangle. 1 3 3 1
b. Describe how the Fibonacci sequence 1 4 6 4 1
is related to Pascal’s triangle. 1 5 10 10 5 1

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336 Chapter 7 The Mathematics of Patterns & Nature

Geometric Fibonacci Patterns

Drawing the Fibonacci Spiral

Using only a compass and a ruler, draw the Fibonacci spiral.
U

8
13

5
3

34
The shell of a chambered nautilus
is a spiral. The spiral can be
21
described mathematically as a
Fibonacci spiral.

SOLUTION 1
2
• Begin by drawing two 1-unit squares. 1

• Adjoin a 2-unit square. 5

• Adjoin a 3-unit square. 3

• Adjoin a 5-unit square.
• Use a compass to draw quarter-
circle arcs inside each square.
1
Locate the arcs so that they form
2
a continuous spiral. 1

Checkpoint Help at

Use the Internet to identify the following Fibonacci spirals in nature.

You can use sticky notes and a. b. c.

thumbtacks to create a
Fibonacci spiral.

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7.4 Fibonacci & Other Patterns 337

Using the Golden Ratio

A B
1 T
Term Ratio The spreadsheet shows that when you find the
2 0 ratio of any two successive terms in the Fibonacci
3 1 sequence (divide the larger by the smaller), you
4 1 1 approach the limit of 1.6180339887. . .. This is
5 2 2 called the golden ratio.
6 3 1.5 Golden
In art, a rectangle whose side lengths are in this ratio
7 5 1.6666667 Rectangle
is considered aesthetically pleasing. Identify some
8 8 1.6
uses of this “golden rectangle” in art and architecture.
9 13 1.625
10 21 1.6153846
SOLUTION
11 34 1.6190476
12 55 1.6176471 The dimensions of the front of the Parthenon in
13 89 1.6181818 Athens are roughly that of a golden rectangle.
14 144 1.6179775
15 233 1.6180556
16 377 1.6180258
17 610 1.6180371
18 987 1.6180328
19 1597 1.6180344
20 2584 1.6180338
21 4181 1.6180341
22

Switch plate Mona Lisa’s face

Study Tip
The golden ratio can be
written exactly using a
square root. Checkpoint Help at
—
1 + √5
— = 1.6180339887 . . . Use the Internet to find other examples of the use of the golden ratio in
2
art or architecture.

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338 Chapter 7 The Mathematics of Patterns & Nature

Other Patterns in Mathematics

You have learned about linear patterns (7.1), exponential patterns (7.2), quadratic
patterns (7.3), and Fibonacci patterns (7.4). There are many other types of
mathematical patterns. Two of them are shown in Examples 5 and 6.

Analyzing Kepler’s Third Law

In the heart of the Scientific Revolution in Europe, Johannes Kepler analyzed
the astronomical observations of Tycho Brahe and, in 1609, published his first
2 laws of planetary motion.
1. The orbit of every planet is an ellipse, with the Sun at one of the two foci.
2. A line joining a planet and the Sun sweeps out equal areas during equal
intervals of time.
His third law of planetary motion was not published until 9 years later. It
concerns the pattern in the following table. The period is the time (in years)
it takes a planet to make one orbit around the Sun. The mean distance is the
average distance (in astronomical units) between a planet and the Sun as the
planet passes through its elliptical orbit.

Planet Mercury Venus Earth Mars Jupiter Saturn

Kepler’s laws and his assertion
that the planets orbit the Sun Period 0.241 0.615 1.000 1.881 11.862 29.457
in elliptical orbits with varying Mean distance 0.387 0.723 1.000 1.524 5.203 9.537
speeds disagreed with the
accepted models of Aristotle, Can you see the pattern?
Ptolemy, and Copernicus.
SOLUTION
Planetary Motion
After many years, 10
Kepler noticed that
(astronomical units)

the square of the 8

Mean distance

period is the cube Jupiter

Saturn
6
of the mean distance.
This relationship is 4 Venus Mars
summarized in Kepler’s
Third Law of 2 Earth
Planetary Motion. Mercury
0
3. The square of the 0 5 10 15 20 25 30 35
period of a planet is Period (years)
directly proportional
to the cube of its meann
distance from the Sun.

Checkpoint Help at

Verify Kepler’s Third Law by completing the following table.

Planet Mercury Venus Earth Mars Jupiter Saturn

(Period)2
(Mean distance)3

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7.4 Fibonacci & Other Patterns 339

Analyzing Hours of Daylight

The graph shows how the hours of daylight vary at any location on the
41st parallel in the northern hemisphere. Describe this pattern.

Hours of Daylight per Day at 41.0î N

24
Spring Summer Autumn Winter
equinox solstice equinox solstice

Number of daylight hours

21

18

15

12
In the United States, the 41st
parallel forms the border between 9
Wyoming and Utah, Wyoming
6
and Colorado, and Colorado
and Nebraska. 3

0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Day of year

SOLUTION
There are four critical points on the graph.

• Summer solstice: This day corresponds to the greatest number of hours

of daylight at any location in the northern hemisphere.
• Winter solstice: This day corresponds to the least number of hours of
daylight at any location in the northern hemisphere.
• Spring & autumn equinox: On these 2 days, every location in the northern
hemisphere receives equal amounts of daylight and darkness—12 hours of
daylight and 12 hours of darkness.
This pattern is called a sine wave or a sinusoid. It continuously oscillates above
and below a mean value.

1.5
1.0
0.5
0
Ź0.5
Ź1.0
Ź1.5
0 1 2 3 4 5 6

Checkpoint Help at

Describe other occurrences in nature that can be modeled by a sine wave.

Explain your reasoning.

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340 Chapter 7 The Mathematics of Patterns & Nature

7.4 Exercises
Fibonacci In Exercises 1– 6, use the Internet to describe how the Fibonacci sequence
is related to the object shown. (See Examples 1 and 2.)
1. Daisies 2. Phyllotaxis

3. Pineapple 4. Pinecone

5. Sneezewort 6. Human body

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7.4 Fibonacci & Other Patterns 341

Golden Rectangle In Exercises 7–10, determine whether the golden ratio

applies to the object. (See Example 4.)
7. 8.

9. 10.

Beauty In Exercises 11–14, use the information below.

(See Example 4.)
Since ancient Greece, symmetry and the golden ratio often have
been thought to embody ideal beauty. Dr. Stephen Marquardt
has studied human beauty for years across both genders and for
all races, cultures, and eras. Through his research, he developed
and patented the RF Mask, which he claims is the most beautiful
shape for a human face.

11. Use the Internet to describe why Dr. Marquardt believes that the
RF Mask models the perfect human face.

12. Compare the distance between the pupils to the length of the
nose on the RF Mask. What do you notice?

13. The RF Mask is applied to the face

of the Egyptian queen Nefertiti
(14th century b.c.). According to
the RF Mask, is Nefertiti beautiful?
Explain.

14. It is common for humans to find or see patterns in everything they do.
Do you think the golden ratio is a law of nature or just a coincidental
pattern detected by humans? Explain your reasoning.

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342 Chapter 7 The Mathematics of Patterns & Nature

Triangular Numbers In Exercises 15–17, use the information below. (See Examples 5 and 6.)
The sequence of triangular numbers is
1, 3, 6, 10, 15, 21, 28, 36, 45, . . ..

15. Describe the pattern.

16. Describe how the sequence of triangular numbers is related to the following diagram.

17. Is 115 a triangular number? Explain your reasoning.

Lucas Sequence In Exercises 18–20, use the information below.

(See Examples 5 and 6.)
The Lucas sequence is named in honor of mathematician
François Édouard Anatole Lucas.
The Lucas sequence is
1, 3, 4, 7, 11, 18, 29, 47, 76, . . ..

18. Describe the pattern.

A B
19. Describe how the Lucas sequence is related to the cactus. 1 Term Ratio
2 1
3 3
4 4 1.333333333
5 7 1.75
6 11
7 18
8 29
9 47
10 76
11 123
12 199
13 322
14 521
15 843
16 1364
17 2207
18 3571
19 5778
20. Use the spreadsheet to find the ratio of successive Lucas 20 9349
numbers. What number do you approach as the numbers 21 15127
get larger?
22

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7.4 Fibonacci & Other Patterns 343

Extending Concepts
Golden Angle In Exercises 21 and 22, use the Internet and the information below.
In the figure, the golden angle is the angle subtended by the smaller red arc.

21. What is the measure of the golden angle in degrees?

Explain why this angle is called the golden angle.
b
22. Describe how the golden angle is related to phyllotaxis.

Golden Triangle In Exercises 23–26, use the Internet and the information below.
A golden triangle is an isosceles triangle in which the ratio of the length of
one of the longer sides to the length of the shorter side is the golden ratio. 36í
The base angles are 72° each, and the smaller angle is 36°.

23. Does a triangle with the following side lengths approximate a golden triangle? Explain. Golden
Triangle
a. 8 ft, 8 ft, 5 ft b. 21 cm, 13 cm, 18 cm
c. 55 m, 34 m, 55 m d. 10 in., 14 in., 14 in. 72í 72í

24. When a base angle of a golden triangle is bisected, the angle bisector divides the
opposite side in a golden ratio and forms two smaller isosceles triangles. The blue
triangle (shown below) that is created from the bisection is a golden triangle. This
process can be continued indefinitely, creating smaller and smaller golden triangles.
Use the bisection process of a golden triangle, a compass, and a ruler to draw the
Fibonacci spiral. A

F G
E B

L H

K
Base angle bisected Process continued

D C
25. The figure at the right is a pentagon with all its diagonals drawn.
How are the diagonals and the sides related to the golden ratio?

26. How many golden triangles can you find in the figure at the right?

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344 Chapter 7 The Mathematics of Patterns & Nature

7.3–7.4 Quiz
Heart Rate Recovery In Exercises 1–3, use the information below.
Heart rate recovery is the reduction in heart rate from the rate at
peak exercise to the rate 1 minute after the exercise has stopped.
It can be used as a predictor of mortality. Heart rate is measured in
beats per minute (bpm). The table shows the relative risk of death
for various heart rate recoveries.

Heart rate
6 8 10 12 14 16 18 20
recovery (bpm)

Relative risk
6.38 5.18 4.14 3.26 2.54 1.98 1.58 1.34
of death

1. Describe the pattern of relative risk of death.

2. Extend the pattern to find the relative risk of death

when the heart rate recovery is 22 beats per minute.

3. Use a spreadsheet to graph the data. Describe the graph.

Golden Heartbeat In Exercises 4–6, use the information below.

The main components of an electrocardiogram (EKG) are the P wave, the electrical
activity in the atria; the QRS complex, the electrical activity in the ventricles; and
the T wave, the electrical recovery of the ventricles. The electrocardiograms of
human heartbeats vary considerably depending on a variety of factors.
4. Some people believe that a peaceful heartbeat
produces a rhythm related to the golden ratio.
Use the EKG to describe how a peaceful
R R heartbeat is related to the golden ratio.

5. The table shows the approximate ratio of

each successive pair of Fibonacci numbers.
Graph the ratios. Identify any similarities to
the EKG.

1 / 0 → ∞
1 / 1 = 1
2 / 1 = 2
3 / 2 = 1.5
P Q S T P Q S T
5 / 3 = 1.667
8 / 5 = 1.6
13 / 8 = 1.625
6. Use the Internet to describe how blood pressure is related 21 / 13 = 1.615
to the golden ratio. 34 / 21 = 1.619

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Chapter 7 Summary 345

Chapter 7 Summary

Section Objectives How does it apply to you?

A sequence of numbers has a linear pattern when each
Recognize and describe a linear
successive number increases (or decreases) by the same
pattern.
Section 1

amount. (See Examples 1 and 2.)

Use a linear pattern to predict a You can extend a linear pattern to predict a value.
future event. (See Example 3.)

A pattern with two variables is proportional when one of

Recognize a proportional pattern. the variables is a constant multiple of the other variable.
(See Examples 5 and 6.)

A sequence of numbers has an exponential pattern when

Recognize and describe an
each successive number increases (or decreases) by the same
Section 2

exponential pattern.
percent. (See Examples 1 and 2.)

Use an exponential pattern to You can extend an exponential pattern to predict a value.
predict a future event. (See Examples 3 and 4.)

Compare exponential and logistic Logistic growth accounts for the physical boundaries that
growth. limit exponential growth in nature. (See Examples 5 and 6.)

A sequence of numbers has a quadratic pattern when its

Recognize and describe a
sequence of second differences is constant.
quadratic pattern.
Section 3

(See Examples 1 and 2.)

Use a quadratic pattern to predict a You can extend a quadratic pattern to predict a value.
future event. (See Examples 3 and 4.)

You can determine whether a sequence follows a linear,

Compare linear, quadratic, and
exponential, or quadratic pattern, or none of these patterns.
exponential growth.
(See Examples 5 and 6.)

In the Fibonacci sequence of numbers, each number is

Recognize and describe the
the sum of the 2 previous numbers, starting with 0 and 1.
Fibonacci pattern.
Section 4

(See Examples 1 and 2.)

Analyze geometric Fibonacci You can identify and describe the Fibonacci sequence in art
patterns. and nature. (See Examples 3 and 4.)

There are many other types of mathematical patterns. You

Recognize and describe other
can analyze them to better understand the world around you.
patterns in mathematics.
(See Examples 5 and 6.)

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346 Chapter 7 The Mathematics of Patterns & Nature

Chapter 7 Review Exercises

Section 7.1
Temperature Resistance
Temperature and Resistance The table shows the (°C) (ohms)
resistances of a coil of copper wire at various
temperatures. In Exercises 1–4, use the table. 20 100.00

1. Does the table relating temperature and resistance represent 21 100.38

a linear pattern? Explain your reasoning.
22 100.76
2. Use a spreadsheet to graph the data. Is the graph linear?
23 101.14

3. Find the resistance of the coil when the temperature is 30°C. 24 101.52

4. Find the resistance of the coil when the temperature is 48°C. 25 101.90

26 102.28

Length Resistance
(meters) (ohms) Length and Resistance The table shows the resistances
of a coil of copper wire for various lengths. In Exercises
0 0 5 and 6, use the table.

4 0.068 5. Is the length of the wire proportional to its resistance?

Make a scatter plot of the data to verify your answer.
8 0.136

12 0.204 6. Extend the pattern in the table to find the resistance

for each length of the copper wire.
16 0.272
a. 26 meters
20 0.340 b. 28 meters

24 0.408 c. 30 meters

Voltage and Current In Exercises 7 and 8, use the

information below.
Electric current is proportional to voltage.

7. Suppose a wire connected to a 3-volt battery has

a current of 15 amperes. What is the current when
the wire is connected to a 9-volt battery?

8. Suppose a wire connected to a 1.5-volt battery has

a current of 20 amperes. What is the current when
the wire is connected to a 4.5-volt battery?

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Chapter 7 Review Exercises 347

Section 7.2
Flour Beetles The graph shows the growth of a flour beetle population
in a natural environment. In Exercises 9–12, use the graph.

Growth of a Flour Beetle Population

200
192
175
Number of beetles

150

125

100
96

75
48
50
24
25 12
6
0
0 1 2 3 4 5 6
Time (weeks)

9. At what rate is the flour beetle population increasing?

10. Predict the number of flour beetles in week 6.

11. When does the population exceed 4000 beetles?

12. How many weeks does it take the population to quadruple?

Flour Beetles In a laboratory, the

growth of a flour beetle population in Growth of a Flour Beetle Population
a container of flour is monitored for 600
12 weeks. The graph shows the growth
of the population. In Exercises 13 –16, 480 495 499
500 460
use the graph. 425 490 497
Number of beetles

13. What type of growth does the graph display? 400 368

300 289
14. What is the maximum sustainable
population? 201
200
124
15. Make a table that shows the change in the
100 70
number of flour beetles for each week.
Discuss any trends. 37
0
0 1 2 3 4 5 6 7 8 9 10 11 12
16. Make a table that shows the percent change Time (weeks)
in the number of flour beetles for each week.
Discuss any trends.

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348 Chapter 7 The Mathematics of Patterns & Nature

Section 7.3
Golden Gate Bridge In Exercises 17–22, use the information below.
The Golden Gate Bridge is a suspension bridge that spans the opening of the
San Francisco Bay into the Pacific Ocean. It has two main suspension cables
that pass over the tops of two main towers at 500 feet above the roadway.
Each of the main cables has a diameter of about 3 feet. The table shows the
heights of the main cables above the roadway relative to the distance from
the middle of the bridge.

Distance
−2000 −1500 −1000 −500 0 500 1000 1500 2000
(ft)

Height
456 260 120 36 8 36 120 260 456
(ft)

17. Describe the pattern in the table.

18. Use a spreadsheet to graph the data in the table. Does the graph appear
to be linear or quadratic? Explain your reasoning.

19. Use the graph from Exercise 18 to predict the

height of the cables 2500 feet from the middle
of the bridge. Is your prediction possible?
Explain your reasoning.

20. A maintenance worker is painting a main cable

when he accidently drops a paintbrush. The
table shows the heights of the paintbrush at
various times. Is the pattern in the table linear,
exponential, quadratic, or none of these?
Explain your reasoning.

Time (sec) Height (ft)

0 576
0.5 572
1 560
1.5 540
2 512
2.5 476
3 432

© Golden Gate Bridge District, [Link]

21. Use a spreadsheet to graph the data in Exercise 20. Describe the graph.

22. Use the graph from Exercise 21 to predict how long it takes the paintbrush
to reach the water.

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Chapter 7 Review Exercises 349

Section 7.4
DNA Deoxyribonucleic acid (DNA) is the genetic
material in all known living organisms and some
viruses. DNA contains two strands wrapped
around each other in a double helix. In
Exercises 23 and 24, use the Internet.

23. Describe how the Fibonacci sequence

is related to each full cycle of a DNA
double helix.

24. Determine whether the golden ratio

applies to a DNA double helix.

B-form DNA In B-form DNA, the intertwined strands

make two grooves of different widths, referred to as the major groove
and the minor groove. In Exercises 25 and 26, use the B-form DNA shown.

Minor Major
groove groove

25. Use the Internet to describe how the Fibonacci sequence is related to the major
and minor grooves of B-form DNA.

26. Determine whether the golden ratio applies to B-form DNA.

DNA Cross-section
In Exercises 27 and 28, use
the cross-sectional view of
a DNA double helix shown.

27. Show how two pentagons

can be used to construct
the cross-sectional view
of a DNA double helix.

28. How is the cross-sectional view of a

DNA double helix related to the golden ratio?

Copyright © Larson Texts, Inc. All rights reserved.

8 The Mathematics of
Likelihood

8.1 Assigning a Measure to Likelihood

Use probability to describe the likelihood of an event.
Analyze the likelihood of a risk.
Use likelihood to describe actuarial data.

8.2 Estimating Likelihood

Find a theoretical probability.
Find an experimental probability.
Estimate a probability using historical results.

8.3 Expected Value

Find an expected value involving two events.
Find an expected value involving multiple events.
Use expected value to make investment decisions.

8.4 Expecting the Unexpected

Find the probability of independent events.
Find the probability that an event does not occur.
Find counterintuitive probabilities.

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Risk Map
1.0

0.9

0.8

High
II I
0.7

Significance
0.6

0.5

0.4

0.3
Low
III IV
0.2

0.1

0
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
Low High

Likelihood

Example 4 on page 355 shows a risk map. Which quadrant

on this map might represent the risk of catching a cold
during the winter?

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352 Chapter 8 The Mathematics of Likelihood

8.1 Assigning a Measure to Likelihood

Use probability to describe the likelihood of an event.
Analyze the likelihood of a risk.
Use likelihood to describe actuarial data.

Describing the Likelihood of an Event

The probability of an event is a number that measures the likelihood that the event
will occur. Probabilities are between 0 and 1, including 0 and 1. The diagram relates
likelihoods (described in words) and probabilities (numbers from 0 to 1).

Equally likely to
Words Impossible happen or not happen Certain
Unlikely Likely

Fraction 0 1 1 3 1
4 2 4
Decimal 0 0.25 0.5 0.75 1
Percent 0% 25% 50% 75% 100%

Describing Likelihoods
Describe the likelihood of each event in words.

Probability of an Asteroid or a Meteoroid Hitting Earth

Asteroid Diameter Probability of impact Date

• Meteoroid 6 in. 0.75 Any day

• Apophis 886 ft 0 2029

• 2000 SG344 121 ft 1/435 2068–2110

• 2008 TC3 4m 1 2008 (occurred)

SOLUTION
NASA says there is no chance
of the 886-foot asteroid Apophis • On any given day, it is likely that a meteoroid of this size will enter Earth’s
atmosphere. If you have ever seen a “shooting star,” you have seen one.
smashing into Earth in its first flyby
in 2029, and only a 1-in-250,000 • A probability of zero means this event is impossible.
chance of a collision in 2036. • With a probability of 1/435 ≈ 0.23%, this event is unlikely.
• With a probability of 1, this event is certain. It occurred in 2008.
Checkpoint Help at

Describe each event as unlikely, equally likely to happen or not happen,

or likely. Explain your reasoning.
a. The oldest child in a family is a girl.
b. The two oldest children in a family are both girls.

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354 Chapter 8 The Mathematics of Likelihood

Analyzing the Likelihood of a Risk

Analyzing the Likelihood of a Risk

Evaluate the following statement.

“The annual risk of being killed in a plane crash for the average American is
about 1 in 11 million.” “How Risky Is Flying?,” David Ropeik

SOLUTION
Here is David Ropeik’s own evaluation of the statement.

“On that basis, the risk looks pretty small. Compare that, for example, to the
annual risk of being killed in a motor vehicle crash for the average American,
which is about 1 in 5,000. But if you think about those numbers, problems crop up
right away. First of all, you are not the average American. Nobody is. Some people
fly more and some fly less and some don’t fly at all. So if you take the total number
of people killed in commercial plane crashes and divide that into the total
population, the result, the risk for the average American, may be a good general
guide to whether the risk is big or small, but it’s not specific to your personal risk.”
David Ropeik taught risk
communication at the Harvard
School of Public Health. He is In his article, Ropeik goes on to say the following.
a coauthor of Risk: A Practical
“. . . numbers are a great way to put risk in general perspective, and there is
Guide for Deciding What’s
no question that by most metrics, flying is a less risky way to travel than most
Really Safe and What’s Really
others. But wait: Just when you thought it was safe to use numbers to put risk
Dangerous in the World
in perspective . . . Numbers are not the only way—not even the most important
Around You.
way—we judge what to be afraid of. Risk perception is not just a matter of the
facts. It’s also a matter of the other things we know (e.g., airline companies
are in financial trouble) and our experiences (maybe you took a really scary,
turbulent flight once) and our life circumstances (my wife was more afraid of
flying when our kids were little). And on top of all that, several general
characteristics make some risks feel scarier than others.”

Checkpoint Help at

Number of Accidental Deaths per

100 Million Passenger Miles in Use the bar graph to compare the risk of
the United States using the different means of transportation.
Deaths (per 100 million

35
passenger miles)

30
There are about 2 accidental deaths for
25
every 100 million airplane miles flown.
20
What does this say about the risk of taking
15
a 2000-mile plane flight? Is it true that the
10
more you fly, the more you increase the
5
likelihood of an accident?
0
Motor- Plane Train Auto
cycle
Transportation

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8.1 Assigning a Measure to Likelihood 355

Comparing Significance and Risk

Give an example of each of the four possible risks.

Risk Map
1.0

0.9

0.8

High
II I
0.7

Significance
0.6

0.5

0.4

0.3
Low III IV
0.2

0.1

0
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
Low High

Likelihood

SOLUTION
• An example of a risk that is significant but unlikely is contracting a serious
illness when you are young.
• An example of a risk that is both significant and likely is contracting a serious
illness if you are extremely overweight.
Risk
RISK ASSESSMENT SURVEY
Description Significance

Rate from 1
(lowest) to 10
(highest).
Likelihood

Rate from 1
(lowest) to 10
(highest).
• An example of a risk that is insignificant but fairly likely is catching a cold
during the year.
The risk that the business does not comply
1.

2.

3.
Environmental

Safety

Operational
with environmental regulations

The risk that employees may be injured or

become sick as a result of the work
environment
The risk that the business may not be able
to operate due to factors such as power
• An example of a risk that is insignificant and unlikely is being stung by
a bee (unless, of course, you are allergic to bee stings).
failure or faulty technology
The risk that any changes to current
4. Regulatory regulations and policies may negatively
impact the business
The risk that customers are not satisfied
Customer
5. with the service or product provided by
Satisfaction
the business

6. Technology
The risk that the business does not have
the proper technology to operate effectively
and compete Checkpoint Help at
The risk that the business does not comply
7. Legal with the law

The risk that the business’s financial

8. Financial reporting may mislead those seeking to

9. Adaptability
invest in or lend to the business
The risk that the business is not able to
adapt to changes in the market or changes
Give an example of each of the following types of risks. Then identify where
in regulation or policy

10. Materials
The risk that changes to the cost of
materials may negatively impact the
business
you think the risk is located on the risk map. Explain your reasoning.
The risk that changes in the economy may
11. Elasticity affect the demand for the good or service

12. Long-term
provided by the business
The risk that the business’s goals,
strategies, and services are not viable
a. Prevent-at-source risks: Threaten the achievement of company objectives
in the long run

b. Detect-and-monitor risks: Should be monitored on a rotational basis to

ensure that they are detected before they occur
Business owners use a risk
assessment survey to determine c. Monitor risks: Should be monitored to ensure that they are being
the significance and likelihood appropriately managed and that their significance has not changed due to
of business risks. A risk map is changing business conditions
then used to plot the significance d. Low-control risks: Require minimal monitoring and control unless
and likelihood of the business subsequent risk assessments show a substantial change, prompting a move
risk occurring. to another risk category

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356 Chapter 8 The Mathematics of Likelihood

Using Likelihood to Describe Actuarial Data

One profession that makes great use of probability is the actuarial profession. An
actuary is a person who assesses the risk of an event occurring and calculates the
cost of that risk. Most actuaries work in the insurance industry.

Using Actuarial Data

Explain how an actuary for an insurance company might use the following
information.

A life insurance policy is a wager on when you will die. Insurance

companies put a lot of work into determining how long you will live. How
do insurance companies determine the probability of when you will die?
Actuaries analyze data to determine factors that influence a person’s
probability of dying. A person’s age is a very significant factor.
For instance, in 2005, the probability of dying for a Californian in the
25–34 age group was 84 in 100,000. The probability nearly doubled to 161
in 100,000 for a Californian in the 35– 44 age group. This doubling pattern
generally continued for consecutive 10-year age groups. The probability of
dying for a Californian in the 75–84 age group was abut 60 times greater
than that of a Californian in the 25–34 age group.
Actuaries also consider a person’s gender when determining the
probability of dying. Generally, for a man and woman of the same age,
the man has a greater risk of dying.

SOLUTION
The paragraph is basically saying
that the older you are, the more Probability of Dying During
likely you are to die. It claims that the Year, Based on Age
through age 74 the probability of 0.06
Probability

dying roughly doubles each time 0.05

your age increases by 10 years. 0.04
This is shown in the graph. An 0.03
actuary uses this information by 0.02
creating questionnaires for people 0.01
who are applying for life 0
insurance and by setting the
34

44

54

4
–6

–7

–8
–

–
25

35

45

55

65

75

insurance rates based on the

answers to the questions in Age
the questionnaires.

Checkpoint Help at

You have taken a job at a large corporation that provides life insurance for its
employees. As part of the employment process, you are asked to supply your age,
gender, height, weight, blood pressure, cholesterol level, race, and marital status.
You are also asked whether you smoke, drink alcohol, exercise regularly, or
participate in dangerous activities, such as skydiving. What is your opinion
about this?
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8.1 Assigning a Measure to Likelihood 357

Analyzing an Actuarial Graph

Discuss the actuarial graph. Does it seem reasonable for life expectancy
in America today?

World Life Expectancies

Probability of Dying During the Year, Based on Age

Probability of dying within 1 year

1.0
0.9
0.8 Male
0.7 Female
0.6
0.5
0.4
0.3
0.2
0.1
0
0 25 50 75 100 125
Age

SOLUTION
The graph shows several things.

• As a person gets older, the probability that the person will die during the
year increases.
Over 80 60–65 • Males have a slightly greater probability of dying than females. For instance,
77.5–80 55–60
at age 90, a male has a 17% chance of dying during the year, while a female
has only a 14% chance of dying during the year.
75–77.5 50–55
The graph seems reasonable for life expectancy in America today.
72.5–75 45–50

70–72.5 40–45
Checkpoint Help at
67.5–70 Under 40

65–67.5 Not available a. Discuss the

actuarial graph. Life Expectancy in America
90
b. How would 80 Male
Years of life remaining

an actuary use 70 Female

the data?
60
50
c. Does the graph
40
seem reasonable?
Explain your 30

reasoning. 20
10
0
0 25 50 75 100 125
Age

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358 Chapter 8 The Mathematics of Likelihood

8.1 Exercises
Describing Likelihood In Exercises 1 and 2, complete the table. Then describe the likelihood
of each event in words. (See Example 1.)
1.
Probability of Fears

Fraction Decimal Percent

1
Dark —
20

Heights 0.36

25
Identity theft —
38

Thunder or lightning 11%

2.
Probability of Health Issues

Fraction Decimal Percent

Diagnosed with cancer 41%

1
Die from flu —
345,100

Has health insurance 0.847

Obese %
26.9%

Snowfall In Exercises 3–6, describe the likelihood that at least 1 inch of snow will
accumulate in the city on the morning of December 25. (See Example 2.)

3. Richmond, Virginia

4. Madison, Wisconsin

5. Denver, Colorado

6. Philadelphia, Pennsylvania

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8.1 Assigning a Measure to Likelihood 359

7. Fatal Occupational Injuries The graph shows the rates of fatal occupational injuries
per 100,000 full-time workers for several industries. (See Example 3.)

Fatal Occupational Injuries

per 100,000 people 16
14 12.7
12
Annual rate

10 9.7
8
6 4.9
4
1.8 2.2
2 1.1
0
Financial Utilities Manufacturing Wholesale Construction Mining
activities trade
Industry

a. Compare the rates of fatal occupational injuries for the different

industries.
b. Why do different industries have different rates?

8. Fatal Occupational Injuries The graph shows the numbers of fatal

occupational injuries for the same industries as in Exercise 7. (See Example 3.)

Fatal Occupational Injuries

1000
900 816
Number per year

800
700
600
500
400
304
300
200
186
101 101
100 17
0
Utilities Financial Mining Wholesale Manufacturing Construction
activities trade
Industry

a. Compare the numbers of fatal occupational injuries for the different industries.
b. Explain why financial activities and mining have the same number of fatal occupational
injuries, but their rates in Exercise 7 are different.

Comparing Significance and Risk In Exercises 9–14, determine the likelihood and significance
of the event. (See Example 4.)
9. A nuclear plant meltdown 10. Contracting a foodborne illness during your lifetime

11. A flood damaging property on a hilltop 12. A person with high blood pressure contracting heart disease

13. A deployed air bag causing a severe injury 14. A heavy smoker contracting cancer

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360 Chapter 8 The Mathematics of Likelihood

Life Expectancy The graphs show the life expectancies of females and males from
1980 through 2007 for 5 countries. In Exercises 15–20, use the graphs. (See Examples 5 and 6.)

Life Expectancies of Females

85

80

75
Age (years)

70

65 Australia
Germany
60 Spain
55 Turkey
United States
0
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007
Year

Life Expectancies of Males

85

80

75
Age (years)

70

65 Australia
Germany
60 Spain
55 Turkey
United States
0
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007
Year

15. Discuss any trends in the graph of the life expectancies of females.

16. Discuss any trends in the graph of the life expectancies of males.

17. Order the countries by female life expectancy from least to greatest for 1980 and 2007.
Compare the orders.

18. Order the countries by male life expectancy from least to greatest for 1980 and 2007.
Compare the orders.

19. Compare the life expectancies of females and males for each country. What do you notice?

20. Which country had the greatest increase in life expectancy for females? Which country
had the greatest increase in life expectancy for males?

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8.1 Assigning a Measure to Likelihood 361

Extending Concepts
Comparing Events In Exercises 21–23, use the spinners.

2 8

9 10
3 4

12 7
6 1

5 11

Spinner A Spinner B

21. You spin spinner A. Which event has a greater likelihood? Explain your reasoning.
a. Event 1: Spinning a number less than 1
Event 2: Spinning a number
greater than 1
b. Event 1: Spinning a multiple of 3
Event 2: Spinning a number
greater than 3

22. You spin spinner B. Which event

has a greater likelihood? Explain
your reasoning.
a. Event 1: Spinning green
Event 2: Spinning red
b. Event 1: Spinning an even number
Event 2: Spinning a prime number

23. You spin both spinners. Which event

has a greater likelihood? Explain
your reasoning.
a. Event 1: Spinning blue on spinner A
Event 2: Spinning blue on spinner B
b. Event 1: Spinning a multiple of 2 on spinner A
Event 2: Spinning a multiple of 6 on spinner B

24. Impossible and Certain Events Describe two events that are impossible.
Describe two events that are certain. Explain your reasoning.

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362 Chapter 8 The Mathematics of Likelihood

8.2 Estimating Likelihood

Find a theoretical probability.
Find an experimental probability.
Estimate a probability using historical results.

Finding a Theoretical Probability

Here are three ways to estimate (or find exactly) the probability that an event
will occur.
Study Tip
1. Theoretical probability is used in cases where all possible outcomes of an
When counting the number event are known and can be counted. Gambling is a common example.
of possible outcomes, be
2. Experimental probability is used in cases where a representative sample can
sure that each is equally
likely. If they are not, you
be taken and counted. Quality control is a common example.
cannot apply the formula 3. Historical probability is used in cases where past occurrences are assumed to be
at the right. representative of future occurrences. Weather prediction is a common example.

Theoretical Probability
Suppose an event can occur n ways out of a total number T of equally likely
outcomes. The probability that the event will occur is
number of favorable outcomes
Probability = ——— n favorable
total number of possible outcomes
outcomes
n
= —.
T
T possible outcomes

Finding a Theoretical Probability

The Daily Number is a common
type of state lottery. To play, you
choose a 3-digit number. Find the
probability of winning for the
following cases.

a. You pick one 3-digit number. b. You pick ten 3-digit numbers.

SOLUTION
There are 1000 possible numbers (000 to 999) that players can select.
1 10 1
a. Probability = — b. Probability = — = —
1000 1000 100
Most states have some form of
state lottery. Altogether, these
lotteries bring in about $52 billion Checkpoint Help at
annually. Of this amount, about
$32 billion is paid out in prize The Daily Number pays $500 for a $1 winning ticket. Suppose you buy ten $1
money. The remainder is tickets each day for 100 days. How many times do you expect to win? During the
retained by the states. 100 days, how much do you spend? How much do you win?

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8.2 Estimating Likelihood 363

Finding a Theoretical Probability

The NNBA Draft Lottery is an annual event held by the National Basketball
Association. The 14 teams that missed the playoffs in the previous season
Assoc
participate in a lottery to determine the order for drafting players. The lottery is
partic
weighted so that the team with the worst record has the best chance of obtaining
weigh
higher draft pick. The lottery determines the first three picks of the draft.
a high

11. 250 combinations

The NBA Draft Lottery
22. 199 combinations
33. 156 combinations The 14 teams are ordered (from worst to best)
and randomly given 4-digit combinations, as
44. 119 combinations
shown at the left.
55. 88 combinations
66. 63 combinations To conduct the lottery, 14 balls numbered
77. 43 combinations 1 through 14 are put into a lottery machine.
88. 28 combinations Four of the numbers are drawn. The team that
99. 17 combinations has that combination of numbers (order does
not matter) wins the first pick. There are 1001
10.
10 11 combinations
possible combinations of 4 numbers (from
11.
11 8 combinations
1 through 14). However, the combination
12.
12 7 combinations
11-12-13-14 does not qualify, leaving only
13.
13 6 combinations 1000 valid combinations.
14.
14 5 combinations

a. What
Wh is the probability that the team with the worst record wins the first pick?
b. What
Wh is the probability that team #14 wins the first pick?

SOLUTION
SOLU
250 1
The National Basketball Probability = — = — = 25%
a. Pro
1000 4
Association (NBA) is the leading
professional basketball league in 5 1
b. Probability = — = — = 0.5%
North America. It has 30 teams. 1000 200
It was formed in 1949 when the
National Basketball League
merged with the Basketball Checkpoint Help at
Association of America.
Enter the number of
A B C
combinations for each
Probability
of the 14 teams in the
1 Team Combinations of 1st Pick
NBA Draft Lottery into
2 1 250 25.0%
a spreadsheet.
3 2 199
c. Use the spreadsheet to find 4 3 156
the probability that each 5 4 119
team wins the first pick. 6 5 88
d. Find the total of the 7 6 63
probabilities column. 8 7 43
What can you conclude? 9 8 28
10

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364 Chapterr 8 The Mathe
Mathematics of Likelihood

Finding an Experimental Probability

In Examples 1 and 2, you could find an exact probability because you could
determine the exact number of favorable outcomes and the exact number
of possible outcomes. In real-life situations, it is sometimes difficult or
impossible to determine this information. In these cases, you can try to
im
find
n a sample that is representative.

Finding an Experimental Probability

To form a theory about the inheritance of eye color, a geneticist records the eye
color of 2400 sets of parents and their children, as shown below.
a. From this sample, what is the probability that a blue-eyed parent and a
brown-eyed parent have a blue-eyed child?
b. What can you conclude about the eye color of the children of a blue-eyed
parent and a brown-eyed parent?
Percent of Light-Colored Eyes in Europe Eye Color of Parents Number of Children with
(400 of each pattern) Given Eye Color

à â
302 72 26

à â
197 152 51

à â
203 0 197

à â
0 301 99

à â
0 198 202

à â
0 4 396

80% 20–49%

50–79% 1–19% SOLUTION

© [Link] a. Of the 400 children with a blue-eyed parent and a brown-eyed parent, there
are 197 blue-eyed children. So, you can estimate the probability to be
197
Probability = — = 49.25%.
400
b. From this sample, it appears that the children of a blue-eyed parent and a
brown-eyed parent are equally likely to have blue eyes or brown eyes.

Checkpoint Help at

From the above sample, what is the probability that a child of two brown-eyed
parents will not have brown eyes?

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8.2 Estimating Likelihood 365

Finding an Experimental Probability

A fast-food restaurant performs the following market research before adding

a broiled chicken sandwich to its menu.

Description of Sample
836 consumers, recruited at malls
10 geographic locations

Gender: 543 Female 293 Male

Age: 418 18–34 418 35–54
Curre customer:
Current 418 Yes 418 No

Numbers in Sample Who Would

“Definitely” Buy the Sandwich

472 229 334 367 343 359

Female Male 18–34 35–54 Yes No

Gender Age Current Customer

Assume that the sample of 836 consumers is representative of the general

population of people who are between the ages of 18 and 54. Describe the
probability that a female buys the sandwich. Describe the probability that
a male buys the sandwich.

SOLUTION
Female: 472 of the 543 women sampled said they would buy the sandwich.
472
Probability = — ≈ 0.87 = 87%
543
So, a female is very likely to buy the sandwich.
Male: 229 of the 293 men sampled said they would buy the sandwich.
229
Probability = — ≈ 0.78 = 78%
293
So, although the sandwich appears to be somewhat less appealing to men than
Finding samples of people who to women, you can still conclude that a male is likely to buy the sandwich.
are truly representative of the
general population is the major Checkpoint Help at
challenge to market research
and polling companies. The Describe the probability of each person buying the sandwich.
saying, “Will it play in Peoria?” Explain your reasoning.
is often used to ask whether a
product will appeal to a broad a. A person in the 18–34 age group
demographic. b. A person who is not a current customer

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366 Chapter 8 The Mathematics of Likelihood

Estimating a Probability Using Historical Results

One of the most common ways to estimate the probability of an event is to look
at how often it occurred in the past.

Interpreting a Historical Probability

Apiphobia is a fear of bees. Cyclophobia is a fear of bicycles. According to the
bubble graph, how many times more likely is it for a person to die in a
bicycling accident than by a bee sting?

Heart Fireworks
disease discharge
1/6 1/386,766
Cancer Flood
Stroke
1/7 1/175,803
1/28
Earthquake
1/148,756
Motor vehicle
accident Legal
1/88 execution
1/96,691
Suicide Lightning
1/112 1/84,079
Hornet, wasp,
or bee sting
1/71,623
Accidental Cataclysmic
poisoning storm
1/130 1/46,044

Excessive
Air or space natural heat
Falls accident 1/12,517
1/171 Fire, 1/7032
Motorcycle smoke, or
Firearm accident Firearm
flames
assault 1/770 discharge
1/1177
Study Tip 1/306 1/6309
Bicycling
The area of each bubble in accident
the bubble graph indicates Pedestrian 1/4717
Drowning
its probability relative to accident
1/1123
the value of the other 1/649
probabilities. SOLUTION
Note that the bubble graph 1 1
is not comprehensive. There P = — ≈ 0.0002 P = — ≈ 0.00001
4717 71,623
are many other causes of
death, such as pneumonia
A fatal bicycle accident is about 20 times more likely than a fatal bee sting.
and diabetes.

Checkpoint Help at

What is the probability that a person dies from heart disease, cancer, or a stroke?
Explain your reasoning.

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8.2 Estimating Likelihood 367

Analyzing a Historical Probability

The graph shows the probability that there will be at least 1 inch of snow on the
ground on December 25. The estimates are based on data over a 30-year period.
How do these data correlate with the latitude of each location?

Snow on December 25
Marquette, MI 100%
Montpelier, VT 93%
Wausau, WI 93%
Bismarck, ND 87%
Portland, ME 83%
Lander, WY 77%
Blue Canyon, CA 74%
Minneapolis, MN 73%
Madison, WI 67%
Great Falls, MT 57%
City

Flagstaff, AZ 56%
Salt Lake City, UT 53%
Denver, CO 50%
Chicago, IL 40%
Boise, ID 30%
Reno, NV 20%
Winslow, AZ 20%
Washington, DC 13%
New York, NY 10%
Prescott, AZ 10%
Albuquerque, NM
A 3%
0% 20% 40% 60% 80% 100%
Probability

SOLUTION Probability of Snow by Latitude

5
Probability of snow on Dec 25

100%
Enter the latitude
and probability of 80%
snow for each city into
a spreadsheet. Then use 60%
the spreadsheet to make
a scatter plot as shown. 40%
The scatter plot indicates
only a slight correlation 20%
between latitude and the
0%
probability of snow. 30 35 40 45 50
Latitude

Checkpoint Help at

Latitude seems to be a weak predictor of snow on December 25. What other

factors can you use to improve the prediction?

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368 Chapter 8 The Mathematics of Likelihood

8.2 Exercises
Dodecahedron Die A dodecahedron die has 12 sides numbered
1 through 12. You roll a dodecahedron. In Exercises 1– 6, find the
probability of the event. (See Example 1.)
1. Rolling a 6 2. Rolling an 11

3. Rolling a number less than 9 4. Rolling a multiple of 4

5. Rolling an odd number 6. Rolling a prime number

7. Raffle A charity sells 1000 tickets for a raffle.

There is a grand prize of $200 and 4 other prizes
of $50. You buy one ticket. (See Example 1.)
a. What is the probability that you win the
grand prize?
b. What is the probability that you win a prize?

8. Lottery The table shows the payouts for the 600,000 people who played the lottery yesterday.
You randomly choose one person who played the lottery yesterday. Find the probability that the
person is in each payout group. (See Example 2.)

Payout People

$0 568,375

$3 18,245

$4 9820

$7 3417

$100 136

$10,000 6

$200,000 1

$16,000,000 0

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8.2 Estimating Likelihood 369

Internet Usage The tables show the results of a survey that asked whether
the Internet is a main news source. In Exercises 9–12, find the probability
of the event. (See Examples 3 and 4.)

Age group Yes No Region Yes No

18–29 259 141 Northeast 179 269

30 – 49 179 193 Midwest 128 208

50 – 64 128 245 South 194 279

65 and over 50 305 West 115 128

9. A person in the 18–29 age group says “yes”

10. A person in the 65 and over age group says “yes”

11. A person in any age group says “no”

12. A person in any region says “no”

13. Data Analysis Compare your answers to Exercises 11 and 12. What do you notice? Explain.

New Year’s Resolutions The circle graphs show the results of a survey that asked men and
women in different body mass index (BMI) categories whether losing weight is one of their
New Year’s resolutions. In Exercises 14 –16, use the graphs. (See Examples 3 and 4.)

Yes Yes
No 444 No
777 689
656

Male Female

Yes Yes
25 140 No No
No Yes 244 Yes 75 Yes
No No 511 491 352 123
143 462

Underweight Normal weight Overweight Obese Morbidly obese

14. Find the probability that losing weight is one of the New Year’s resolutions for each
gender. Then describe the likelihood.

15. Find the probability that losing weight is one of the New Year’s resolutions for a
person in each BMI category. Then describe the likelihood.

16. Describe any trends you see in the graphs.

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370 Chapter 8 The Mathematics of Likelihood

Football The graph shows the positions of the most valuable players (MVPs) for the
first 45 Super Bowls. (Note: There are 46 players in the graph because there were
co-MVPs in Super Bowl XII.) In Exercises 17–22, use the graph. (See Examples 5 and 6.)

Super Bowl MVPs

30

25 24
Number of MVPs

20

15

10
7 6
5 3 2 2 1 1
0
ck

ck

er

an

er

ck

er
t
fe
iv

ck

rn
ba

Ba

ba
m
ce

Sa
ba

tu
ne
er

er
g

Re

Re
in
rt

ne

rn
Li
ua

nn

Co
e

Li

ck
id

siv
Q

Ru

Ki
W

en
ef
D

Position

Super Bowl MVPs

17. Find the probability that a quarterback is a (2002–2011)
Super Bowl MVP. 2011 Aaron Rodgers, quarterback
2010 Drew Brees, quarterback
2009 Santonio Holmes, wide receiver
18. Find the probability that an offensive player
(quarterback, running back, or wide receiver) 2008 Eli Manning, quarterback
is a Super Bowl MVP. 2007 Peyton Manning, quarterback
2006 Hines Ward, wide receiver
2005 Deion Branch, wide receiver
19. Find the probability that a defensive or
2004 Tom Brady, quarterback
special teams player (defensive lineman,
r)
linebacker, safety, cornerback, or kick returner) 2003 Dexter Jackson, safety
is a Super Bowl MVP. 2002 Tom Brady, quarterback

20. How many times more likely is it for a

Super Bowl MVP to be a quarterback than
a wide receiver?

21. How many times more likely is it for a Super Bowl

MVP to be a running back than a linebacker?

22. How many times more likely is it for a

Super Bowl MVP to be a quarterback
than a defensive or special teams player?

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8.2 Estimating Likelihood 371

Extending Concepts
Comparing Probabilities In Exercises 23–25, you have a standard deck of cards.

23. You randomly choose a card from the deck. Find the theoretical probability of
choosing a card of each suit.

24. The bar graph shows the results of randomly choosing 1 card, recording its suit,
and placing it back in the deck for 50 trials. Find the experimental probability of
choosing a card of each suit.

Choosing a Card
21

18 17
Number of cards

15
13
12
12

9 8
6

0
Hearts Diamonds Spades Clubs

Suit

25. Compare the probabilities you found in Exercises 23 and 24.

Addition Rule The probability that one of two events occurs is

( ) ( ) (
Probability that either event occurs = probability + probability − probability of .
of event 1 of event 2 both events )
In Exercises 26–28, you randomly choose a card from a standard deck of cards.
Find the probability.

26. Choosing a heart 27. Choosing a black suit 28. Choosing a face card
or a 6 or a 2 or a diamond

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372 Chapter 8 The Mathematics of Likelihood

8.1–8.2 Quiz
1. Winter Storm The table shows the probabilities of a winter
storm in New York for several months. Complete the table.
Then describe the likelihood of each event in words.

Month Fraction Decimal Percent

November 4.4%
25
December —
74

January 0.081

February 30.1%
5
March —
34

Snowfall in Montana In Exercises 2–5, describe the likelihood that at least 1 inch
of snow will accumulate in the city.
Probability of 1 Inch (or more) of Snow

95%
90%
80%
Opheim 70%
60%
Sidney 50%
Helena 40%
30%
Billings 20%
10%
5%
1%

2. Billings 3. Helena

4. Sidney 5. Opheim

Randomly Selected Digits In Exercises 6–8, consider a computer that randomly

selects a 4-digit number. Each digit can be any number from 0 to 9.
6. How many possible numbers are there?

7. Find the probability that the number is greater than or equal to 3000.

8. Find the probability that the number is divisible by 1000.

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Chapter 8 Project Math & Plinko 373

Math & Plinko

PROJECT: Modeling a Binomial Distribution

1. Use the Plinko Simulator at [Link].

dY
• Set the number of rows to 25.
• Set the probability of falling to the right at 0.5.
• Drop a ball by pressing “Start.”
• Drop 99 more balls. You do not have to wait for one drop to complete before starting the next drop.

Press “Start” to
drop a new ball.

Theoretical
distribution

Experimental
distribution

2. Print or copy the distribution. How close is the experimental distribution

to the theoretical distribution?

3. This type of distribution is called a binomial distribution. The name

comes from the fact that as the ball hits a peg, it can fall in two ways
(right or left). Estimate the probability that the ball lands in each of
the positions from 0 through 25. Explain your reasoning.

4. Is it possible that a ball lands in position 25? What is the likelihood

of this? Explain your reasoning.

5. Describe an event in real life that can be modeled by a binomial distribution.

ion.
Adjust the simulator to fit the event. Run a simulation and summarize
your results.

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374 Chapter 8 The Mathematics of Likelihood

8.3 Expected Value

Find an expected value involving two events.
Find an expected value involving multiple events.
Use expected value to make investment decisions.

Finding an Expected Value Involving Two Events

The expected value of an “experiment” is the long-run average—if the experiment
could be repeated many times, the expected value is the average of all the results.

Expected Value
Consider an experiment that has only two possible events. The expected value
of the experiment is

Expected value =
( probability
of event 1 )( payoff for
event 1
+
) (
probability
of event 2 )( payoff for
event 2 ).

Finding an Expected Value

I a state lottery, a single digit is drawn from each of four containers. Each
In
ccontainer has 10 balls numbered 0 through 9. To play, you choose a 4-digit number
aand pay $1. If your number is drawn, you win $5000. If your number is not drawn,
yyou lose your dollar. What is the expected value for this game?

SOLUTION
S
The probability of winning is 1/10,000. The probability of losing is 9999/10,000.
T

( 1
)
Expected value = — (4999) + — (−1) = −$0.50
10,000 ( 9999
10,000 )
Probability of win Payoff for win Probability of lose Payoff for lose

So, on average, you should expect to lose $0.50 each time you play the game.

Checkpoint Help at

Play the Lottery Simulator at [Link]. Set the number of games to

100,000. Discuss your results in the context of expected value. States are often
criticized for falsely raising people’s expectations of winning and for encouraging
a form of regressive tax on the poor. What is your opinion of this?

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8.3 Expected Value 375

Find an Expected Value

You take out a fire insurance policy on your home. The annual premium is $300.
In case of fire, the insurance company will pay you $200,000. The probability of
a house fire in your area is 0.0002.
a. What is the expected value?
b. What is the insurance company’s expected value?
c. Suppose the insurance company sells 100,000 of these policies.
What can the company expect to earn?

SOLUTION
200,000 − 300

a. Expected value = (0.0002)(199,700) + (0.9998)(−300) = −$260.00

Fire No Fire
The expected value over many years is −$260 per year. Of course, your
The total annual cost of fire in the hope is that you will never have to collect on fire insurance for your home.
United States is about 2.5% of the b. The expected value for the insurance company is the same, except the
domestic gross product. perspective is switched. Instead of −$260 per year, it is +$260 per year.
Of this, the company must pay a large percent for salaries and overhead.
c. The insurance company can expect to gross $30,000,000 in premiums on
100,000 such policies. With a probability of 0.0002 for fire, the company can
expect to pay on about 20 fires. This leaves a gross profit of $26,000,000.

Checkpoint Help at

In the circle graph, why is the percent for property damage greater than the
percent for fire insurance premiums?

Total Annual Cost of

Fire in the United States

Deaths and injuries Property damage 5.5%

11.7% Fire insurance premiums
4.2%

Career fire departments

11%

Volunteer fire Fire protection

departments in buildings
38.1% 17.3%

Other economic costs

12.2%

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376 Chapter 8 The Mathematics of Likelihood

Finding an Expected Value Involving Multiple Events

Comparing Two Expected Values

A child asks his parents for some money. The parents make the following offers.
Fa
Father’s offer: The child flips a coin. If the coin lands heads up, the father will
giv
give the child $20. If the coin lands tails up, the father will give the child nothing.
Mo
Mother’s offer: The child rolls a 6-sided die. The mother will
giv
give the child $3 for each dot on the up side of the die.
Wh
Which offer has the greater expected value?

SOLUTION
SO
Father’s offer:
Fa

()
1
2 ()
1
Expected value = — (20) + — (0) = $10
2

Probability Payoff for Probability Payoff

off
of heads heads of tails for tails

Mo
Mother’s offer: There are six possible outcomes.

A B C D
1 Number
N Payoff e
Probability Expected Value
2 1 $3.00 16.67% $0.50
0
3 2 $6.00 16.67% 0
$1.00
4 3 $9.00 16.67% 0
$1.50
5 4 $12.00 16.67% $2.00
0
6 5 $15.00 16.67% 0
$2.50
7 6 $18.00 16.67% 0
$3.00
8 Total $10.50
0
9
Even though the mother’s offer has a slightly higher expected value, the best the
child can do with the mother’s offer is $18, whereas the child has a 50% chance
of receiving $20 with the father’s offer.

Checkpoint Help at

The child’s uncle makes a different offer. The child rolls a 12-sided die. The uncle
will give the child $2 for each dot on the up side of the die. Use a spreadsheet to
find the expected value of this offer. Which offer would you take? Explain.

A B C D
1 Number Payoff Probability Expected Value
2 1 $2.00 8.33% $0.17
3 2 $4.00 8.33% $0.33
4 3 $6.00 8.33% $0.50
5 4 $8.00 8.33% $0.67
6

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8.3 Expected Value 377

Using a Decision Tree

Your company is considering developing one of two cell phones. Your development
and market research teams provide you with the following projections.
Cell phone A:
Cost of development: $2,500,000
Projected sales: 50% chance of net sales of $5,000,000
30% chance of net sales of $3,000,000
20% chance of net sales of $1,500,000
Cell phone B:
Cost of development: $1,500,000
Projected sales: 30% chance of net sales of $4,000,000
60% chance of net sales of $2,000,000
10% chance of net sales of $500,000
sh
Which model should your company develop? Explain.
A off 20
As 2010,
0 iit was estimated
i d
that there were over 5 billion
SOLUTION
cell phone subscriptions A decision tree can help organize your thinking.
worldwide. With this massive
market, the enticement to invest Probability Profit Expected Value
in the development of new and 50%
$2.5 million 0.5(2.5)
innovative products is strong. 30%
$0.5 million 0.3(0.5)
A 20% à0.2(Ź1)
Ź$1 million
$1.2 million
30%
$2.5 million
0.3(2.5)
60%
$0.5 million 0.6(0.5)
B 10% à0.1(Ź1)
Ź$1 million
$0.95 million
100% 1.0(0) â $0 million
$0
Neither

Although cell phone A has twice the risk of losing $1 million, it has the greater
expected value. So, using expected value as a decision guideline, your company
should develop cell phone A.

Checkpoint Help at

Which of the following should your company develop? Explain.

Cell phone C: Cost of development: $2,000,000
Projected sales: 40% chance of net sales of $5,000,000
40% chance of net sales of $3,000,000
20% chance of net sales of $1,500,000
Cell phone D: Cost of development: $1,500,000
Projected sales: 15% chance of net sales of $4,000,000
75% chance of net sales of $2,000,000
10% chance of net sales of $500,000

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378 Chapter 8 The Mathematics of Likelihood

Using Expected Value to Make Investment Decisions

Using Expected Value

Analyze the mathematics in the following description of Daniel Kahneman and
Amos Tversky’s “Prospect Theory: An Analysis of Decision under Risk.”

“A problem is positively framed when the options at hand generally have a

perceived probability to result in a positive outcome. Negative framing
occurs when the perceived probability weighs over into a negative
outcome scenario. In one of Kahneman and Tversky’s (1979) experiments,
the participants were to choose one of two scenarios, an 80% possibility to
win $4,000 and the 20% risk of not winning anything as opposed to a 100%
possibility of winning $3,000. Although the riskier choice had a higher
expected value ($4,000 × 0.8 = $3,200), 80% of the participants chose the
safe $3,000. When participants had to choose between an 80% possibility
to lose $4,000 and the 20% risk of not losing anything as one scenario, and
a 100% possibility of losing $3,000 as the other scenario, 92% of the
Daniel Kahneman, a professor
participants picked the gambling scenario. This framing effect, as described
at Princeton University, became
in . . . Prospect Theory, occurs because individuals over-weigh losses when
the first psychologist to win the
they are described as definitive, as opposed to situations where they are
Nobel Prize in Economic Sciences.
described as possible. This is done even though a rational economical
The prize was awarded for his
evaluation of the two situations lead to identical expected value. People
“prospect theory” about investors’
tend to fear losses more than they value gains. A $1 loss is more painful
“illusion of control.”
than the pleasure of a $1 gain.” Johan Ginyard

SOLUTION
Here are the first two options the participants were given.
H
Greater Expected Value
expected value
O
Option 1: 80% chance of gaining $4000 (0.8)(4000) + (0.2)(0) = $3200
20% chance of gaining $0
O
Option 2: 100% chance of gaining $3000 (1.0)(3000) = $3000
Preferred by
participants
H
Here are the second two options the participants were given.
Preferred by Expected Value
participants
O
Option 1: 80% chance of losing $4000 (0.8)(−4000) + (0.2)(0) = −$3200
20% chance of losing $0
O
Option 2: 100% chance of losing $3000 (1.0)(−3000) = −$3000
Greater
expected value
W
What Kahneman and Tversky found surprising was that in neither case did the
participants intuitively choose the option with the greater expected value.

Checkpoint Help at

Describe other situations in which people fear losses more than they value gains.

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8.3 Expected Value 379

Comparing Two Expected Values

A speculative investment is one in which there is a high risk of loss. What is the
expected value for each of the following for a $1000 investment?
a. Speculative investment b. Conservative investment
• Complete loss: 40% chance • Complete loss: 1% chance
• No gain or loss: 15% chance • No gain or loss: 35% chance
• 100% gain: 15% chance • 10% gain: 59% chance
• 400% gain: 15% chance • 20% gain: 5% chance
• 900% gain: 15% chance

SOLUTION
a. Speculative investment
A B C D
1 Result Payoff Probability
ity Expected
Expecte Value
2 Complete loss -$1,000 40% -$400
From 1973 through 2010, the
3 No gain or loss $0 15% $0
Standard and Poor 500 Index had
4 100% gain $1,000 15% $150
an average annual gain of 11.5%.
5 400% gain $4,000 15% $600
During this time, its greatest annual
6 900% gain $9,000 15% $1,350
gain was 37.4% in 1995, and its
greatest annual loss was 37% 7 Total 100% $1,700
in 2008. 8

b. Conservative investment
A B C D
1 Result Payoff Probability Expected Value
2 Complete loss -$1,000 1% -$10
3 No gain or loss $0 35% $0
4 10% gain $100 59% $59
5 20% gain $200 5% $10
6 Total 100% $59
7

This example points out the potential gain and the risk of investment. The
speculative investment has an expected value of $1700, which is a high return
on investment. If you had the opportunity to make 100 such investments, you
would have a high likelihood of making a profit. But, when making only 1 such
investment, you have a 40% chance of losing everything.

Checkpoint Help at

Which of the following investments is better? Explain your reasoning.

c. Speculative investment d. Conservative investment
• Complete loss: 20% chance • Complete loss: 2% chance
• No gain or loss: 35% chance • No gain or loss: 38% chance
• 100% gain: 35% chance • 20% gain: 55% chance
• 400% gain: 5% chance • 30% gain: 5% chance
• 2000% gain: 5% chance

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380 Chapter 8 The Mathematics of Likelihood

8.3 Exercises
Life Insurance The table shows the probabilities of dying during the year for various ages.
In Exercises 1–6, use the table. (See Examples 1 and 2.)

Probability of Dying During the Year

Age Male Female

21 0.001420 0.000472

22 0.001488 0.000487

23 0.001502 0.000496

24 0.001474 0.000503

25 0.001430 0.000509

26 0.001393 0.000519

27 0.001366 0.000535

28 0.001362 0.000561

29 0.001379 0.000595

30 0.001406 0.000637

1. A 23-year-old male pays $275 for a 1-year $150,000 life insurance policy.
What is the expected value of the policy for the policyholder?

2. A 28-year-old female pays $163 for a 1-year $200,000 life insurance policy.
What is the expected value of the policy for the policyholder?

3. A 27-year-old male pays $310 for a 1-year $175,000 life insurance policy.
What is the expected value of the policy for the insurance company?

4. A 25-year-old female pays $128 for a 1-year $120,000 life insurance policy.
What is the expected value of the policy for the insurance company?

5. A 26-year-old male pays $351 for a 1-year $180,000 life insurance policy.
a. What is the expected value of the policy for the policyholder?
b. What is the expected value of the policy for the insurance company?
c. Suppose the insurance company sells 10,000 of these policies.
What is the expected value of the policies for the insurance company?

6. A 30-year-old female pays $259 for a 1-year $250,000 life insurance policy.
a. What is the expected value of the policy for the policyholder?
b. What is the expected value of the policy for the insurance company?
c. Suppose the insurance company sells 10,000 of these policies.
What is the expected value of the policies for the insurance company?

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8.3 Expected Value 381

Consumer Electronics Company A consumer electronics company is considering developing

one of two products. In Exercises 7–10, use a decision tree to decide which model the company
should develop. (See Examples 3 and 4.)
7. Laptop A: Cost of development
development: $8 million Laptop B: Cost of development: $10 million

Projected Sales Projected Sales

Net sales Net sales
Probability
Prob Probability
(in millions) (in millions)
10% $16 30% $18
70% $12 50% $14
20% $6 20% $8

8. MP3 Player A: MP3 Player B:

Cost of development: $5 million Cost of development: $3 million

Projected Sales Projected Sales

Net sales Net sales
Probability Probability
(in millions) (in millions)
20% $10 40% $6
60% $8 40% $5
20% $2 20% $1

9. E-reader A: Cost
os of development: $3 million E-readerr B: Cost off development:
developpment: $4 million

Projected Sales Projected Sales

Net sales Net sales
P
Probability Probability
(in millions) (in millions)
20% $10 10% $12
45% $6 40% $10
25% $5 30% $4
10% $0.5 20% $1

10.
0 Camera A: Camera B:
Cost of development: $5 million Cost of development: $3.5 million

Projected Sales Projected Sales

Net sales Net sales
Probability Probability
(in millions) s)
(in millions)
10% $13 20% $10
30% $10 35% $7.5
20% $8 25% $5.5
25% $6 10% $3.5
15% $2 10% $0.5

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382 Chapter 8 The Mathematics of Likelihood

Option Comparison In Exercises 11–14, compare the two options. (See Example 5.)
11. 12.
Probability Gain Probability Gain

100% $1000 100% −$1000

Option 1 Option 1
0% $0 0% $0

60% $2000 70% −$2000

Option 2 Option 2
40% $0 30% $1000

13. 14.
Probability Gain Probability Gain
80% $1000 75% $500
Option 1 Option 1
20% $3000 25% $1500
90% $2000 50% −$500
Option 2 Option 2
10% $0 50% $2000

Investment Comparison You want to invest $1000. In Exercises 15 and 16,,

find the expected values for the two investments. (See Example 6.)
15.
Speculative investment Conservative investment

• Complete loss: 10% chance • Complete loss: 1% chance

n
nce
• No gain or loss: 20% chance • No gain or loss: 39% chance
h
hance
• 150% gain: 40% chance • 50% gain: 40% chance
• 200% gain: 20% chance • 100% gain: 20% chancee
• 700% gain: 10% chance

16. Speculative investment Conservative investment

• Complete loss: 30% chance • Complete loss: 5% chance

n
nce
• No gain or loss: 25% chance • No gain or loss: 15% chance
hance
• 100% gain: 20% chance • 30% gain: 60% chance
• 500% gain: 15% chance • 60%
% gain: 20% chance
• 1000% gain: 10% chance
ance

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8.3 Expected Value 383

Extending Concepts
Investment Portfolio The table shows the rates of return of two stocks
for different economic states. In Exercises 17 and 18, use the table.

Rate of return

Economic State Probability Stock V Stock W

Boom 20% 28% −5%
Normal 65% 12% 7%
Recession 15% −16% 23%

17. Compare the expected rates of return of the two stocks.

18. You invest 50% of your money in stock V and 50% of your money in stock W.
What is the expected rate of return?

Investment Portfolio The table shows the rates of return of three stocks for
different economic states. In Exercises 19–22, find the expected rate of return
for the portfolio.
Rate of return
Economic
Probability Stock X Stock Y Stock Z
state
Boom 20% 16% 27% 3%
Normal 65% 9% 13% 7%
Recession 15% −5% −23% 21%

19. 20.

Portfolio mix: Portfolio mix:

50% invested in stock X 70% invested in stock X
20% invested in stock Y 10% invested in stock Y
30% invested in stock Z 20% invested in stock Z

21. 22.

Portfolio mix: Portfolio mix:

50% invested in stock X 60% invested in stock X
25% invested in stock Y 30% invested in stock Y
25% invested in stock Z 10% invested in stock Z

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384 Chapter 8 The Mathematics of Likelihood

8.4 Expecting the Unexpected

Find the probability of independent events.
Find the probability that an event does not occur.
Find counterintuitive probabilities.

Finding the Probability of Independent Events

Two events are independent if the occurrence of one does not affect the
occurrence of the other. For instance, the event “consumer likes chocolate”
should be independent of the event “consumer has more than one cell phone.”

Probability of Independent Events

The probability that two independent events occur is the product of their
individual probabilities.

Probability that both events occur =

( probability
of event 1 )( probability
of event 2 )
This principle can be applied to three or more independent events.

Finding the Probability of Independent Events

In the game of Yahtzee, rolling five dice with the
same
sa number is called a YAHTZEE. What is the
probability
p of rolling five 6s?

SOLUTION
S
Rolling
R one die has no effect
on
o any of the other dice. So,
the
th events are independent. For
each
e die, the probability of rolling a 6 is
one-sixth.
o So, the probability of rolling five 6s is

Probability
P ( )( )( )( )( )
1
of rolling five 6s = — — — — —
6
1
6
1
6
1
6
1
6
Yahtzeee was first marketed
()
5
1
bby Ed
Edwin
i LLowe iin 1956. = —
6
1
= —.
7776

So, you have a 1 in 7776 chance of rolling five 6s on any given roll.

Checkpoint Help at

In the game of Yahtzee, you are allowed three rolls of the dice, and you are
allowed to keep any of the dice you want. With 3 rolls, it can be shown that the
probability of rolling any YAHTZEE is about 1 out of 22. Visit [Link]
to play a dice game simulator. How many times do you play the game before you
roll a YAHTZEE?

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8.4 Expecting the Unexpected 385

Using Independent Events to Detect Fraud

Benford’s law states that in real-life data, the leading digit is 1 almost one-third
of the time. Digits greater than 1 occur as the leading digit with decreasing
frequencies, as shown in the table.

Leading Benford’s Law

Probability
digit 35
1 30.1% 30
2 17.6% 25

Probability
3 12.5% 20
4 9.7% 15
5 7.9% 10
6 6.7% 5
7 5.8% 0
1 2 3 4 5 6 7 8 9
Benford’s law was used by the 8 5.1%
Leading digit
character Charlie Eppes to help 9 4.6%
solve a case in the “Running
Man” episode of the television You work for the IRS. As a means of randomly selecting tax returns to audit,
crime drama NUMB3RS. you propose the following. A computer randomly selects one of the amounts
from the first page and a second amount from the second page. If both amounts
have 9 as a leading digit (as in $93.28 and $901.92), the return will be audited.
a. Using Benford’s law, what percent of the returns should be audited?
b. Suppose each digit is equally likely to occur as a leading digit. What percent
should be audited?

SOLUTION
a. According to Benford’s law, you should expect to select 9 as the leading
digit only 4.6% of the time. The probability of selecting two 9s is
Probability of selecting two 9s = (0.046)(0.046) ≈ 0.00212.
So, about 0.2% of the returns (about 2 out of 1000) should be audited.
b. If each digit is equally likely to occur as a leading digit, then a 9 should be
selected as the leading digit one-ninth of the time. The probability of
selecting two 9s is

( )( )
1
Probability of selecting two 9s = — — ≈ 0.012.
9
1
9
So, about 1.2% of the returns (about 12 out of 1000) should be audited.

Checkpoint Help at

The following excerpt from The New York Times indicates that Benford’s law
can be used to spot fraudulent tax returns. Explain how this could happen.

“Dr. Hill is one of a growing number of statisticians, accountants and

mathematicians who are convinced that an astonishing mathematical
theorem known as Benford’s Law is a powerful . . . tool for pointing
suspicion at frauds, embezzlers, tax evaders, sloppy accountants . . ..”

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386 Chapter 8 The Mathematics of Likelihood

Finding the Probability That an Event Does Not Occur

Find

Probability That an Event Does Not Occur

P
If the probability that an event occurs is p, then the probability that the event
does not occur is
do
Probability that event does not occur = 1 − p.

Finding the Probability of an Event

A classroom has 35 students. What is the probability that at least two of them have
tthe same birthday?

SOLUTION
S
T answer this question, you can use a technique that is frequently used in
To
pprobability. That is, it is often easier to find the probability that an event does not
ooccur, and then subtract the result from 1 to find the probability that it does occur.
35 factors

Probability that all

( )( )( )( ) ( )( )
366 365 364 363 333 332
35 students have = — — — — . . . — — ≈ 0.187
different birthdays 366 366 366 366 366 366

Probability that at
least 2 students have = 1 − 0.187 = 0.813
Of the 70 (as of 2010) women to the same birthday
win the Academy Award for Best
Actress, there are 4 pairs who So, the probability that at least 2 of the students have the same birthday is
share the same birthday: Jane about 81.3%. Surprising, isn’t it?
Wyman and Diane Keaton (Jan 5),
Joanne Woodward and Elizabeth Checkpoint Help at
Taylor (Feb 27), Barbra Streisand
and Shirley MacLaine (Apr 24), Use a spread
spreadsheet to extend the result of the above example to 40 students.
and Helen Mirren and Sandra
Bullock (Jul 26). A B C
Number
N of Unused Probability of
1 S
Students Birthdays Different Birthdays
2 1 366 100.00%
3 2 365 99.73%
4 3 364 99.18%
5 4 363 98.37%

36 35 332 18.65%
37 36 331
38 37 330
39 38 329
40 39 328
41 40 327

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8.4 Expecting the Unexpected 387

Finding the Probability of an Event

Y are an actuary for a retirement pension company. When a person retires at
You
age 65, you use the following table to help determine the amount the person can
ag
withdraw monthly from his or her account.
w

Probability of Person Age 65

Living to Certain Age

Age Male Female

80 59% 70%

85 38% 51%

90 19% 30%

95 6% 12%

For some retirement accounts, a person can take the option of having monthly
withdrawals (at a lesser amount) as long as the person or the person’s spouse
survives. Consider a man and a woman who are each 65 years old.
a. What is the probability that at least 1 of them lives to age 80?
b. What is the probability that at least 1 of them lives to age 90?

SOLUTION
When analyzing questions like these, be sure that you do not start multiplying
probabilities without thinking carefully. For instance, in these questions it is
easier to work with the probability that both people do not survive.
Man Woman
Probability that both
a. = (1 − 0.59)(1 − 0.70) = 0.123 Age 80
do not survive to age 80

Probability that at least

= 1 − 0.123 = 0.877
one does survive to age 80

So, there is an 87.7% chance that at least 1 will survive to age 80.

Probability that both Man Woman

b. do not survive to age 90 = (1 − 0.19)(1 − 0.30) = 0.567 Age 90

Probability that at least

= 1 − 0.567 = 0.433
one does survive to age 90

So, there is a 43.3% chance that at least 1 will survive to age 90.

Checkpoint Help at

Rework the probabilities in the above example in the case that (c) both people
are women and (d) both people are men.

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388 Chapter 8 The Mathematics of Likelihood

Counterintuitive Probabilities

Finding a Counterintuitive Probability

On the game show Let’s Make a Deal, the contestant is given the choice of three
doors. Behind two of the doors are goats. Behind the other door is a new car.
Step 1: The contestant randomly chooses one of the doors.
Step 2: The game show host knows the location of the car. After the contestant
chooses a door, the host reveals the goat behind one of the remaining
doors. Then the host asks the contestant, “Do you want to switch doors?”
Step 3: The contestant either switches or stays with his or her first choice.
Based on probability, what should the contestant do?

Monty Hall hosted the game

show Let’s Make a Deal for many
years. In 1990, Marilyn vos Savant,
a columnist at Parade magazine,
published the solution of the
“Monty Hall Problem.” The
magazine received about 10,000
responses, most of which said that
Marilyn was wrong. She was,
however, correct.

SOLUTION
On the show, many contestants stay with their original choice. However, consider
the table. Because it is irrelevant, assume the contestant chooses door 1.

Door 1 Door 2 Door 3 Result if switching Result if staying

Car Goat Goat Goat Car

Goat Car Goat Car Goat

Goat Goat Car Car Goat

Win: 2 out of 3 Win: 1 out of 3

So, by switching, the contestant doubles the likelihood that he or she wins the car.
For most people, this result seems counterintuitive.

Checkpoint Help at

Play the Monty Hall Game at [Link] 20 times by staying and 20 times
by switching. Do your outcomes agree with the probabilities in the example?

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8.4 Expecting the Unexpected 389

Winning a Lottery Twice: Fraud?

The likelihood of winning a major state lottery is very small. Yet some people
have won state lotteries more than once. Does this indicate fraud? Explain
your reasoning.

Lottery Luck Strikes Twice in Three Months

ST. LOUIS - You are as likely to win the lottery as you are to be struck
by lightning. Ernest Pullen, a Missouri resident, has won the lottery twice
in a matter of three months. In June, he won his first cash prize for $1
million. In September, he won his second cash prize for $2 million.
One lottery official called it an amazing coincidence.

SOLUTION
This problem is difficult because there is not enough information to analyze
it completely. Even so, consider a simplified example.

• There is a drawing every day with one winner.

• The same million people play each day.

• The probability of winning with one ticket is one-millionth.

With these assumptions, the mathematical strategy for the solution is the same
as that in the “Birthday Problem” in Example 3 on page 386.
365 factors
Probability that all
(
1,000,000 999,999
365 tickets have = — — — . . . —
different owners
)(999,998
1,000,000 1,000,000 1,000,000 )(
999,636
1,000,000 ) ( )
≈ 0.936

Probability that at
least 2 tickets have = 1 − 0.936 = 0.064
the same owner
So, there is about a 6.4% chance that during 1 year, someone will win the
lottery twice. At the end of 2 years, this probability increases to 23.4%.
By the end of 3 years, it increases to 45.1%.
Be sure you see that this is not the probability that you (or any other given
person) will win the lottery twice. It is simply the probability that someone
will win it twice. The point is this—having someone win twice is not an
indication of fraud.

Checkpoint Help at

You win a state lottery for $1 million and you have the choice of receiving
$50,000 a year for 20 years or $500,000 in a lump-sum payment now.
(a) Suppose you live in California and take the lump-sum payment. How much
state and federal tax do you have to pay on your winnings? (See Section 5.2.)
(b) Canadian citizens do not have to pay income tax on lottery winnings. Do
you agree that Americans should have to pay state income tax on a lottery
sponsored by the state? Explain.

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390 Chapter 8 The Mathematics of Likelihood

8.4 Exercises
Computer-Generated Sequence A computer randomly generates a sequence of symbols.
The circle graph shows the probability that the computer generates each of the symbols.
In Exercises 1–7, find the probability that the sequence occurs. (See Examples 1 and 2.)

Probabilities of Symbols
1.

2.
12% 10%

3. 8%

7%
4.

6%
5.
Blank 5%
50%

6.

2%
7.

Around 1900, Charles Fey invented a slot machine called the Liberty Bell. It
had three spinning reels with a total of five symbols: horseshoes, diamonds,
spades, hearts, and a Liberty Bell. Three bells produced the biggest payoff,
which was 10 nickels.

8. Slot Machine Complete the A B C D

spreadsheet to find the expected 1 Event Probability Payoff Expected Value
value of each of the events in 2 3 cherries 150
Exercises 1–7. Then find the 3 3 bars 200
probability that a given spin is a 4 3 watermelons 250
“no win.” Suppose these symbols 5 3 lemons 400
represent a slot machine game. 6 3 plums 1,000
What is the expected value? 7 3 oranges 7,500
8 3 sevens 12,000
9 No win -1
10
11

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8.4 Expecting the Unexpected 391

Dice In Exercises 9–12, find the probability of the event. (See Examples 3 and 4.)
9. You roll three dice. What is the probability of rolling at least
two of the same number?

10. You roll five dice. What is the probability of rolling at least
two of the same number?

11. You roll six dice. What is the probability of rolling at least
one odd number?

12. You roll seven dice. What is the probability of rolling at least
two of the same number?

Marbles There are 26 marbles in a bag. The graph shows the color distribution
of the marbles. In Exercises 13–16, use the graph. Assume that you randomly
draw one marble from the bag and you put the marble back before drawing
another. (See Examples 3 and 4.)

Distribution of Marbles
9
8
Number of marbles

7
6
5
4
3
2
1
0
Red Green Yellow Blue
Color

13. You randomly draw three marbles from the bag. What is the probability
that none of the marbles are red?

14. You randomly draw five marbles from the bag. What is the
probability that none of the marbles are yellow?

15. You randomly draw four marbles from the bag. What is the
probability that at least one marble is green?

16. You randomly draw six marbles from the bag. What is the probability
that at least one marble is blue?

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392 Chapter 8 The Mathematics of Likelihood

17. Coin Conundrum Your friend flips two coins and tells you that at least one coin landed
heads up. What is the probability that both coins landed heads up? (See Example 5.)

18. Boy or Girl Paradox Your friend has two children. At least one of the children
is a boy. Considering the order that the children were born, what is the probability
that the other child is a girl? (See Example 5.)

19. Treasure Beyond Measure You are a contestant on the fictional

game show Treasure Beyond Measure. The host presents you with
five unopened treasure chests. One chest contains $1,000,000. The
other four contain nothing. You randomly choose two of the chests.
The host, knowing which chest contains the money, opens two of
the remaining chests and shows that they contain nothing. The host
then asks you, “Do you want to switch your two chests for the one
chest that I didn’t open?” Based on probability, what should you
do? (See Example 5.)

20. Ultimate Monty Hall You are a contestant on the fictional

game show Ultimate Monty Hall. The host presents you with
101 unopened doors. Behind one door is a car. Behind the other
100 doors are goats. You randomly choose 50 of the doors. The host, t,
knowing the location of the car, reveals the goats behind 50 of the remaining
emaining doors.
The host then asks you, “Do you want to switch your 50 doors for the 1 door that
I didn’t open?” Based on probability, what should you do? (See Example 5.)

Card Puzzle In Exercises 21 and 22, use the information below. (See Examples 5 and 6.)
You deal two of the cards shown to your friend.

21. Your friend says, “I have at least one ace.” What is the probability that your friend’s
other card is an ace?

22. Your friend says, “I have the ace of spades.” What is the probability that your friend’s
other card is an ace?

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8.4 Expecting the Unexpected 393

Extending Concepts
Bayes’ Theorem In Exercises 23–26, use the information below.

For any two events with probabilities greater than 0,

Probability of event 1 (
given event 1
= ————.
)(
probability of event 2 probability
of event 1 )
given event 2 probability of event 2

23. You have the following information about students at a college.

• 49% of the students are male.

• 11% of the students are nursing majors.
• 9% of the nursing majors are male.

What is the probability that a student is a nursing major given

that the student is male?

24. You have the following information about students at a college.

• 51% of the students are female.

• 10% of the students are history majors.
• 60% of the history majors are female.

What is the probability that a student is a history major given

that the student is female?

25. You have the following information about voters in a

local mayoral election.

• 61% of voters were registered Republican.

• 53% of voters voted Republican.
• 86% of voters who voted Republican were registered Republican.

What is the probability that a voter voted Republican given that the
voter was registered Republican?

26. You have the following information about voters in a local congressional election.

• 74% of voters were registered Democrat.

• 62% of voters voted Democrat.
• 79% of voters who voted Democrat were registered Democrat.

What is the probability that a voter voted Democrat given that the voter was
registered Democrat?

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394 Chapter 8 The Mathematics of Likelihood

8.3–8.4 Quiz

Multiple-Choice Quiz You take a 10-question multiple-choice quiz. Each

question has four choices. In Exercises 1–7, suppose you guess when
answering the questions.

1. Suppose you gain 1 point when you answer

a question correctly and 0 points when you Name Date

answer a question incorrectly. What is the 1. Who was the first president of the United States?

expected value of the quiz? A George Washington B Thomas Jefferson C John Adams D Gerald Ford

2. Who wrote the Declaration of Independance?

2. Suppose you gain 1 point when you answer A Thomas Jefferson B Benjamin Franklin C Samuel Adams D John Hancock

a question correctly and lose ¼ point when 3. Who wrote the The Wealth of Nations?
you answer a question incorrectly. What is A John Maynard Keynes B Adam Smith C Thomas Paine D Thomas Johnson
the expected value of the quiz? 4. Who was the president of the Confederate States?

A Robert E. Lee B Jefferson Davis C John C. Calhoun D Edwin Stanton

3. What is the probability that you answer every
5. Who was Thomas Jefferson’s first vice president?
question incorrectly? A George Clinton B Aaron Burr C James Madison D Spiro Agnew

6. In what year did Alaska officially become a state?

4. What is the probability that you answer every
A 1859 B 1911 C 1945 D 1959
question correctly?
7. Which president was never married?

A Grover Cleveland B Andrew Jackson C James Buchanan D Ulysses S. Grant

5. What is the probability that you answer only
8. Which president was called “the Great Communicator”?
the first question correctly?
A Franklin Roosevelt B John Kennedy C Jimmy Carter D Ronald Reagan

6. What is the probability that you answer only 9. Which president’s foreign policy was to “speak softly and carry a big stick”?

A William McKinley B Theodore Roosevelt C William Taft D James Polk

the first five questions correctly?
10. Which president’s 1972 visit to China helped improve the relationship between the U.S. and China?

7. What is the probability that you answer at A Lyndon Johnson B Harry Truman C Richard Nixon D Dwight Eisenhower

least one question correctly?

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Chapter 8 Summary 395

Chapter 8 Summary

Section Objectives How does it apply to you?

Probabilities are numbers between 0 and 1, including 0 and 1.
Use probability to describe the
An event with a probability of 0 is impossible. An event with
Section 1

likelihood of an event.
a probability of 1 is certain. (See Examples 1 and 2.)

You can assess the risk involved in a given situation.

Analyze the likelihood of a risk.
(See Examples 3 and 4.)

Use likelihood to describe Actuaries use probabilities to calculate the costs of risks.
actuarial data. (See Examples 5 and 6.)

You can find the probability of an event in cases where all

Find a theoretical probability. possible outcomes of an event are known and can be counted.
Section 2

(See Examples 1 and 2.)

You can find the probability of an event in cases where

Find an experimental probability. a representative sample can be taken and counted.
(See Examples 3 and 4.)
You can find the probability of an event in cases where past
Estimate a probability using
occurrences are assumed to be representative of future
historical results.
occurrences. (See Examples 5 and 6.)

Find an expected value involving You can determine the long-run average of an experiment.
two events. (See Examples 1 and 2.)
Section 3

You can extend the concept of expected value to situations

Find an expected value involving
in which there are more than two events. (See Examples 3
multiple events.
and 4.)

Use expected value to make You can use expected value to compare different investments.
investment decisions. (See Examples 5 and 6.)

You can find the probability that two events occur when the
Find the probability of
occurrence of one does not affect the occurrence of the other.
independent events.
Section 4

(See Examples 1 and 2.)

If you know the probability that an event occurs, then you
Find the probability that an event
can calculate the probability that the event does not occur.
does not occur.
(See Examples 3 and 4.)

You can solve problems in which the probability of an event

Find counterintuitive probabilities.
is counterintuitive. (See Examples 5 and 6.)

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396 Chapter 8 The Mathematics of Likelihood

Chapter 8 Review Exercises

Section 8.1
1. Describing Likelihood The table shows the probabilities of several events.
Complete the table. Then describe the likelihood of each event in words.

Event Fraction Decimal Percent

4
Being an organ donor —
15

Eats breakfast 0.61

Having a dream that comes true 42.9%

Household with television 98.2%

Snowfall in Washington In Exercises 2–5, describe the likelihood

that at least 1 inch of snow will accumulate in the city.

2. Olympia Probability of 1 Inch (or more) of Snow

95%
3. Packwood 90%
80%
70%
4. Richland 60%
Seattle 50%
5. Seattle 40%
Olympia 30%
Packwood 20%
10%
Richland 5%
1%

Deaths
250
per 100,000 people

6. Deaths The graph 200 190.9

shows the death rate 178.4
Annual rate

per 100,000 people 150

in the United States
for several causes. 100
Compare the rates for
50 42.2 40.8 40.0
the causes of death. 22.7 22.5 16.2
0
Diseases of
the heart

Cancer

Cerebrovascular
diseases

Chronic lower
respiratory
diseases

Accidents

Alzheimer’s
disease

Diabetes

Infuenza and
pneumonia

Cause

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Chapter 8 Review Exercises 397

Section 8.2
Platonic Solids In Exercises 7–10, use the information below.

There are five Platonic solids: tetrahedron, cube, octahedron, dodecahedron, and icosahedron.

Tetrahedron Cube Octahedron Dodecahedron Icosahedron

7. Why do these solids make natural shapes for dice?

8. Which shape is the best for dice? Why? Which is the worst? Why?

9. A die has the shape of an icosahedron, with consecutively numbered sides

starting at 1. What is the probability of rolling a number that is greater than 5?

10. There are only five possible Platonic solids. What is the definition of
a Platonic solid?

MP3 Player The tables show the results of a survey that asked adults whether
they own an MP3 player. In Exercises 11 and 12, use the tables.

Age group Yes No

18–29 630 212

30–49 479 343

50–64 250 553

65 and over 52 482

Geographic location Yes No

Rural 120 270

Suburban 700 750

Urban 591 615

11. Find the probability that an adult in each age group owns
an MP3 player. Then describe the likelihood.

12. Find the probability that an adult in each geographic location

owns an MP3 player. Then describe the likelihood.

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398 Chapter 8 The Mathematics of Likelihood

Section 8.3
Home Appliance Company In Exercises 13–16, assume that you are the owner of a
home appliance company.
13. You take out a $500,000 fire insurance policy on your factory. The annual premium
is $2750. The probability of a fire is 0.005. What is the expected value?

14. You take out a $250,000 flood insurance policy on your factory. The annual premium
is $3770. The probability of a flood is 0.014. What is the expected value?

15. Your company is considering developing one of two toaster models. Use a decision
tree to decide which model your company should develop.
Toaster A: Cost of development: $500,000 Toaster B: Cost of development: $750,000

Projected Sales Projected Sales

Net sales Net sales
Probability Probability
(in thousands) (in thousands))
25% $1000 30% $1200
65% $600 55% $800
10% $250 15% $500

16. Your company is considering developing one of two microwave models.

Use a decision tree to decide which model your company should develop.
Microwave A: Cost of development: $1,000,000 Microwave B: Cost of development: $900,000

Projected Sales Projected Sales

Net sales Net sales
Probability
Prob Probability
(in thousands) (in thousands)
20% $1600 35% $1500
65% $1400 45% $1300
15% $800 20% $750

Probability Gain
100% $1000
Option 1
0% $0
17. Option Comparison Compare the two options.
50% $500
Option 2
50% $2000

Speculative investment Conservative investment

• Complete loss: 30% chance • Complete loss: 5% chance

18. Investment Comparison You want to • No gain or loss: 25% chance • No gain or loss: 30% chance
invest $1000. Find the expected values
for the two investments. • 100% gain: 25% chance • 25% gain: 60% chance
• 200% gain: 15% chance • 50% gain: 5% chance
• 500% gain: 5% chance

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Chapter 8 Review Exercises 399

Section 8.4
Summer Weather The table shows the probability of sunshine or rain on any
given day in July for a town. In Exercises 19–22, use the table.

Weather Probability

75%

25%

19. What is the probability of rain three days in a row?

20. What is the probability of sunshine five days in a row?

21. What is the probability of rain at least once during a week?

22. What is the probability of sunshine at least once during a week?

Winter Weather The probability of snow on any given day in December for a town is 30%.
In Exercises 23–26, use this information.

23. What is the probability of snow four days

in a row?

24. What is the probability of no snow six days

in a row?

25. What is the probability of snow at least once

during a week?

26. What is the probability of no snow at least

once during a week?

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9 The Mathematics of
Description

9.1 Information Design

Use stacked area graphs to represent the changing parts
of a whole.
Use a radar graph and an area graph to represent data.
Graphically represent data sets that have several variables.

9.2 Describing “Average”

Use mean, median, and mode to describe the average value
of a data set.
Read and understand box-and-whisker plots and histograms.
Understand the effect of outliers on averages.

9.3 Describing Dispersion

Use standard deviation to describe the dispersion of a data set.
Use standard deviation to describe a data set that is normally
distributed.
Compare different types of distributions.

9.4 Describing by Sampling

Use a randomly chosen sample to describe a population.
Determine whether a sample is representative of a population.
Determine a sample size to obtain valid inferences.

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Age Distribution of U.S. (2010) Age Distribution of Brazil (2010)
100 100
Male 95 Female Male 95 Female
90 90
85 85
80 80
75 75
70 70
65 65
60 60
55 55
50 50
45 45
40 40
35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0

12 9 6 3 0 0 3 6 9 12 8 6 4 2 0 0 2 4 6 8
Population (millions) Population (millions)

Example 1 on page 412 uses population pyramids to describe

the distribution of ages in the United States and in Brazil.
How do the two distributions differ?

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402 Chapter 9 The Mathematics of Description

9.1 Information Design

Use stacked area graphs to represent the changing parts of a whole.
Use a radar graph and an area graph to represent data.
Graphically represent data sets that have several variables.

Stacked Area Graphs

Information design is the presentation of data and information so that people
can understand and use it. Throughout this text, you have seen many types of
information design: bar graphs, circle graphs, scatter plots, line graphs, and
bubble graphs. In this section, you will look at several more graphical ways to
organize and present data.

Reading a Stacked Area Graph

Describe the information presented in the stacked area graph.

Motor Vehicle Accident Fatalities

in the United States (1994−2009)
4
40,000
Buses & other
35,000

30,000 Trucks
25,000
Fatalities

20,000 Motorcycles

15,000

10,000
Passenger cars
P
5,000

0
1995 1997 1999 2001 2003 2005 2007 2009
Year

SOLUTION
Here are some observations.
The picture of data and • The total number of fatalities was relatively constant from 1994 to 2007.
information that you show people • The number of passenger car fatalities has decreased.
has everything to do with their
understanding of the data and
• In 1994, passenger cars accounted for about two-thirds of all motor vehicle
fatalities. By 2009, they accounted for only about one-half of all motor
information. vehicle fatalities.
• The number of motorcycle fatalities has increased.

Checkpoint Help at

The data for Example 1 is available at [Link]. Use the data to compare
motorcycle fatalities in 1994 and 2009.
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9.1 Information Design 403

Interpreting a Stacked Area Graph

A household began using the Internet in 1995. The stacked area graph shows the
composition of Internet traffic for the household from 1995 to 2010. Suppose you
see this graph online. What comments can you make about the graph?

Internet Traffic (1995−2010)

100
90 Other Gaming
80
According to a report by Email
70 Peer-to-peer Video
Sandvine Network Demographics,
60

Percent
streaming videos from Netflix
50
represent 29.7% of peak downsteam
traffic for North American fixed 40

access networks. This makes 30 Web

Netflix the single largest source 20
of peak downstream traffic for 10
these networks. 0
1995 2000 2005 2010
Year

SOLUTION
Here are some comments.
COMMENT:
What does the vertical axis represent? Time? Bits? Users?

This is a good question. The answer is “bits.”

Here are some other comments.
COMMENT:
In the graph, the term Web does not mean Internet. It means HTML
data. Someone looking at the graph may be misled and assume that
the term Web is referring to the Internet.

COMMENT:
One minute of streaming video is about 2 MB. This is about 100 times
the size of a typical e-mail and about 10 times the size of a typical web
page. So, you would have to send 100 e-mails or visit 10 web pages to
use the same amount of bandwidth as a single minute of streaming video.

This graph illustrates that you must be careful with how you present data.
Information design is a powerful tool. When it is used incorrectly, the results
can be very misleading.

Checkpoint Help at

From the graph, can you conclude that the household’s Web usage, in total bits
downloaded, declined from 1995 to 2010? Explain.
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404 Chapter 9 The Mathematics of Description

Radar Graphs and Area Graphs

Reading a Radar Graph

Describe th
the information presented in the radar graph.

Percent of 18-Year-Olds in School

1998
Estonia
Finland 100 Ireland 2007

Austria 90 Poland
80
70
Netherlands Latvia
60
50
40
Hungary Lithuania
30
20
During the 1989 revolution against Spain Portugal
Communist dictator Nicolae
Ceausescu, a fire destroyed about
500,000 books in Bucharest’s Greece Romania
Central University Library. After
the fall of communism, Romania
moved into a period of economic Denmark France
reform. The library was repaired
Czech Republic Sweden
and reopened in 2001. Romania United States
joined the European Union in 2007.

SOLUTION
Here are some observations.

• The percent increased in all countries (the blue graph is farther away from
the center than the purple graph) except for France, Greece, Portugal, and
Sweden.

• In France and Greece, the percent decreased.

• In Portugal and Sweden, the percent stayed about the same.

• By drawing a circle at 65%, you can see that in 2007, the United States,
Portugal, and Greece had the least percent of 18-year-olds in school.

• The country that made the greatest increase from 1998 to 2007 was Romania.
You might assume that Romania had a great cultural change during these
10 years.

Checkpoint Help at

What other observations can you make about the radar graph?

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9.1 Information Design 405

Drawing an Area Graph

The following area graph is taken from Information is Beautiful by David
McCandless. Describe the information and patterns presented in the graph.

Days When Couples Break Up

Spring Break 2 weeks before
“spring clean” winter holidays

Valentine’s Day April Fool’s Day

Summer
Mondays holiday Christmas
“too cruel”

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

COPYRIGHT © 2009 BY DAVID MCCANDLESS. Reprinted with permission of HarperCollins Publishers

SOLUTION
The graph shows the results of tracking 10,000 Facebook status updates to
determine when people in relationships broke up.
© 2010 David McCandless. Reprinted with permission of

There are several patterns that you can observe in the graph.
• The two peak times during the year when people break up are in the month
leading up to Spring Break and the month leading up to Christmas.

• The spike in the number of breakups on April Fool’s Day may be a result
HarperCollins Publishers Ltd.

of people changing their relationship statuses as a joke.

• The frequency of breakups is relatively low from late July through October.

• The day of the year when people are least likely to break up is Christmas.

David McCandless’s book on Checkpoint Help at

information design is “a visual
guide to the way the world What observations can you make about the area graph below?
really works.”
Revenue from Top 12 Movies by Week of the Year (2009)
$500
Revenue (millions)

$400
$300
$200
$100
$0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
Week

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406 Chapter 9 The Mathematics of Description

Information Design with Several Variables

Animating Information
At [Link]/world, you can watch “Wealth & Health of Nations” to see
how countries have changed from 1800 through the present. Describe some of the
variables displayed in the graph.

SOLUTION
Here are some of the variables.

• The vertical axis measures life expectancy. The higher the bubble,
the greater the life expectancy.
• The horizontal axis measures income per person. The farther to the
right the bubble, the greater the income per person.
• The area of the bubble measures population size. The bigger the
bubble, the larger the population.
• The color of the bubble indicates the geographic region.
• The date on the coordinate plane indicates the year.
You can watch a short lecture
called “200 years that changed
Checkpoint Help at
the world” at [Link].

• Watch the position of China in the animation from 1800 through the
present. Describe the changes during the 200+ years.

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9.1 Information Design 407

Reading a Design with Several Variables

The stream graph shows trends in the top 25 movies at the box office for each
weekend in 2010. Describe the variables displayed in the graph.

Revenue for Top 25 Movies in 2010

Each

Despicable Me
The Twilight Saga
horizontal
section

Inception
The Karate Kid

repesents
Toy Story 3

$25 million
in revenue.

12 JUN
2010 26 JUN 2010 24 JUL 2010
17 JUL 2010
19 JUN 2010 3 JUL 2010 10 JUL 2010

SOLUTION
Here are the variables.

• The color identifies the title of the movie.

• The horizontal axis shows the weekend during the year.

• The height of the color shows the revenue for the weekend.

• The position of the color for each weekend indicates the order from highest
box office receipts to lowest box office receipts.

© 2010 Disney/Pixar

Toy Story 3 is a 3D computer- Checkpoint Help at

animated film by Disney/Pixar.
During 2010, it had the greatest Describe how the colors in the graph can help you identify movies that have
box office receipts for the particularly long runs at the box office.
weekends of June 19 and June 26.
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408 Chapter 9 The Mathematics of Description

9.1 Exercises
USAF Fighter Force The stacked area graph shows the composition off the aircraft
in the United States Air Force (USAF) fighter force. In Exercises 1– 6, use the graph.
(See Examples 1 and 2.)

USAF Fighter Force

ce (1950−2009)
10,000

9,000

8,000
Total active aircraft

7,000
F-94
6,000
F-106
5,000
F-104
F-111
4,000 F-86
F-105
F-89
F-101 F-117
3,000 F-102 F-5 F-22A
F-82 F-15
2,000 F-16
F-84 F-100 F-4
F-80 AT-33 A-37
1,000 F-51 A-1 A-7
A-10
F-47
0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2009
Year

1. Describe the information presented in the stacked area graph.

2. Which aircraft was the largest component of the USAF fighter force
in the 1970s?

3. Find the size of the USAF fighter force in 2009 as a percent of the
peak size in the 1950s.

4. In which decade did the USAF fighter force have the least variety
ty of aircraft?
Explain your reasoning.

5. Do you agree with the comment shown? Explain your reasoning.

g.

COMMENT:
The F-16 is losing favor as the most popular fighter jet in the USAF
SAF
fighter force.

6. What other comments can you make about the stacked

area graph?
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9.1 Information Design 409

Competitor Profiles In Exercises 7–10, use the radar graph. (See Example 3.)

Competitor Profiles
Revenue (millions)
Company A
$250 Company B
Company C
Company D
Company E
$150

Customer Profit (as a percent

satisfaction of revenue)
5 $50 50%
4 40%

$20

2000
$40
2500
$50
Number of employees Current stock price

7. Which competitor has the greatest customer satisfaction?

8. Which competitor has the most employees?

9. Which competitor has the greatest profit percent? Which competitor

makes the most profit? Explain your reasoning.

10. When do you think it would be beneficial to use a radar graph in

information design?

Stock Price The area graph shows the stock price of company C during 2010.
In Exercises 11–14, use the area graph. (See Example 4.)

11. Describe the information and patterns

presented in the graph. 2010 Stock Price for Company C
35
Stock price (dollars)

30
12. What was the stock price in week 31?
25
20
13. Suppose you bought 100 shares of stock in 15
week 15 and sold them in week 51. Did you 10
lose money or earn a profit?
5
0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
14. What was the highest percent return an
investor could have earned during 2010? Week
Explain your reasoning.

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410 Chapter 9 The Mathematics of Description

Candlestick Chart A candlestick chart can be used to monitor the movements of a

stock price. In Exercises 15–22, use the chart. (See Examples 5 and 6.)

Prices of a Stock
$25.00
$24.50
$24.00
Stock price

$23.50 high
$23.00 close
open
$22.50 open close
$22.00
low
$21.50
$21.00
0
Monday Tuesday Wednesday Thursday Friday

Day

15. Describe the variables displayed in the graph. 16. What does it mean when the candlestick
is green? red?

17. What is the opening price on Monday? Tuesday? 18. What is the closing price on Wednesday? Thursday?

19. On which day did the stock have the greatest 20. Explain why the candlestick for Wednesday does not
gain? loss? have a lower shadow.

21. What is the highest percent return you could have 22. Use the Internet to find other ways to display stock
earned during this week? Explain your reasoning. prices. Which type of design do you prefer?

The techniques used in candlestick charting originated

in 17th-century Japan. Homma, a rice trader from
Japan, is credited with early versions of candlestick
charting, which have evolved over many years.

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9.1 Information Design 411

Extending Concepts
Life Chart In Exercises 23–28, use the following information.
Your habits, behaviors, and activities indicate who you are as a person. A life chart gives
a visual representation of your daily information over time. An example of a life chart
is shown.

Daily Activities
100
90
80
Socializing
70
TV
Percent

60
Other
50
Studying
40 School
30 Sleeping
20
10
0
y

ay

ay

ay

ay

ay

ay
da

sd

sd

sd

id

rd

nd
on

Fr
e

ne

ur

tu

Su
Tu
M

Th

Sa
ed
W

Day

23. Estimate the amount of time you allocate to your

daily activities for a typical week. Use the data to
create a life chart like the one shown.

24. How might your life chart for a year differ from your life
chart for a week?

25. Explain why a chart like the one in Example 2 is better suited for the information
displayed in a life chart than a chart like the one in Example 1.

26. Many people try to make lifestyle changes such as getting more sleep, saving more
money, and losing weight. Do you think a life chart can help you make lifestyle
changes over time? Explain your reasoning.

27. Other than time allocation, what are some other personal data that you can track to
help manage your life?

28. Organize some data from one of the topics you listed in Exercise 27. Create an
information design to present the data in a way that you have not seen in this text.

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412 Chapter 9 The Mathematics of Description

9.2 Describing “Average”

Use mean, median, and mode to describe the average value of a data set.
Read and understand box-and-whisker plots and histograms.
Understand the effect of outliers on averages.

Mean, Median, and Mode

Some data sets have typical values that are representative of the entire set. For
instance, a typical adult thumb is about 1 inch wide. (Historically, this is how
inches were measured.) In such data sets, there are three basic ways to describe the
Study Tip
“average” of the data set. These measures are called measures of central tendency.
Here is an example of This is part of a field called descriptive statistics.
mean, median, and mode.
Data: 1, 2, 2, 2, 3, 4, 6, 7, 9
36 Mean, Median, and Mode
Mean: — = 4
9
Median: To find the mean, add all the values in the data set and divide by the number
middle number = 3 of values in the set.
Mode: most frequent = 2 To find the median, arrange the values in order. The number in the middle or
the mean of the two middle values is the median.
To find the mode, look for the value that occurs most often in the data set.

Estimating the Mean, Median, and Mode

The population pyramid shows the age Age Distribution of U.S. (2010)
distributions of males and females in the Male
100
95 Female
e
90
United States. Estimate the mean, median, 85
80
and mode for males and females. 75
70
65
60
SOLUTION 55
50
45
40
You can use a spreadsheet and the actual 35
30
25
data to determine the mean, median, 20
15
and mode. 10
5
0

Mean: The mean age for males is 12 9 6 3 0 0 3 6 9 12

about 36, and the mean age Population (millions)

Age Distribution of Brazil (2010)
100
for females is about 39.
Male 95 Female
90
85
80
Median: The median age for both males and females is
75
70
between 35 and 39.
65
60
55
50 Mode: The mode age for both males and females is between 45 and 49.
45
40
35
30
25
20 Checkpoint Help at
15
10
5
0 How does the population pyramid of the United States differ from the
8 6 4 2 0 0 2 4 6 8 population pyramid of Brazil? Explain your reasoning.
Population (millions)

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9.2 Describing “Average” 413

Comparing Population Pyramids

Compare the mean, median, and mode of the three types of population pyramids.
Describe the economic repercussions of each type.

Expansive Constrictive Stationary

Male 85
80
Female Male 85
80
Female Male 85
80
Female
75 75 75
70 70 70
65 65 65
60 60 60
55 55 55
50 50 50
45 45 45
40 40 40
35 35 35
30 30 30
25 25 25
20 20 20
15 15 15
10 10 10
5 5 5
0 0 0

SOLUTION
Expansive: A large percent of the population is in the young age group and
working age group. The mean, median, and mode lie toward the beginning
of the age spectrum. The working age group must support a relatively large
population of youths.

Constrictive: A large percent of the population is in the working age group.

The mean, median, and mode are similar to those of the United States in
Example 1. This group must provide for the young and the old.

Stationary: There is a larger percent of the population in the old age group
than in the other two population pyramids. The mean and the median lie
toward the middle of the age spectrum. The working age group must support
a relatively large population of old people.

Checkpoint Help at

Match the population pyramid with Afghanistan, Canada, and Mexico.

Explain your reasoning.

a. b. c.
100 100 100
Male 95 Female Male 95 Female Male 95 Female
90 90 90
85 85 85
80 80 80
75 75 75
70 70 70
65 65 65
60 60 60
55 55 55
50 50 50
45 45 45
40 40 40
35 35 35
30 30 30
25 25 25
20 20 20
15 15 15
10 10 10
5 5 5
0 0 0

4.8 3.6 2.4 1.2 0 0 1.2 2.4 3.6 4.8 1.6 1.2 0.8 0.4 0 0 0.4 0.8 1.2 1.6 2.4 1.8 1.2 0.6 0 0 0.6 1.2 1.8 2.4
Population (millions) Population (millions) Population (millions)

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414 Chapter 9 The Mathematics of Description

Box-and-Whisker Plots and Histograms

Reading a Box-and-Whisker Plot

The box-and-whisker plot shows the weights of the 59 players on the 2010
Chicago Bears football team. Use the graph to analyze the players’ weights.

Weights of Chicago Bears

Minimum: 183 Median: 233 Maximum: 328
Mean: 241.3

Lower quartile: 202.5 Upper quartile: 276.5

150 175 200 225 250 275 300 325 350

Weight (pounds)

SOLUTION
A box-and-whisker plot conveys a wealth of information. Here are some
observations you can make about the weights of the players.

The mean weight of National • About 15 players weighed between 183 and 202.5 pounds.
Football League (NFL) quarterbacks
is about 24 pounds less than the
• About 15 players weighed between 202.5 and 233 pounds.
mean weight of the players • About 15 players weighed between 233 and 276.5 pounds.
in general.
• About 15 players weighed between 276.5 and 328 pounds.
• There was a greater range of weights for the heaviest 25% of the players
(about 50 pounds) than there was for the lightest 25% of the players
(about 20 pounds).

You can make your own box-and-whisker plots at [Link].

Checkpoint Help at

The box-and-whisker plot shows the weights of the 40-man roster of the
2010 Los Angeles Angels of Anaheim baseball team. Use the graph to analyze
the players’ weights.

Weights of Los Angeles Angels of Anaheim

Minimum: 170 Median: 200
Mean: 202.5 Maximum: 240

Lower quartile: 188.75 Upper quartile: 215

150 175 200 225 250 275 300 325 350

Weight (pounds)

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9.2 Describing “Average” 415

Reading Histograms

The color-coded histograms show the data from Example 3 in a different way.
Compare the histograms to the box-and-whisker plots. What new information
do the histograms provide?

Weights of Chicago Bears

Tackles â Quarterbacks â
Guards/Centers â Running backs â
DE/TE â Wide receivers â
Linebackers â Other players â

175 200 225 250 275 300 325

Weight (pounds)

Weights of Los Angeles Angels of Anaheim

Pitchers â
Catchers â
Infielders â
Outfielders â

175 200 225 250 275 300 325

Weight (pounds)

The mean weight of Major League SOLUTION

Baseball (MLB) pitchers is not very
different from the mean weight of The histograms do not show the medians or quartiles of the data sets.
the players in general. On the other hand, the histograms show how the data are distributed. You can
make the following observations that are not evident in the box-and-whisker plots.

• For football players, there is a correlation between weight and position.

Tackles, guards, centers, tight ends, and defensive ends tend to weigh
considerably more than the other players.

• For baseball players, there is not a strong correlation between weight

and position.

Checkpoint Help at

Make histograms showing the weights of players on another NFL team and another
MLB team. Are the histograms similar to the two above? Explain your reasoning.

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416 Chapter 9 The Mathematics of Description

The Effect of Outliers on Averages

An outlier in a data set is a value that lies outside (is much smaller or larger than)
most of the other values in the data set.

Analyzing Outliers and Averages

The 2009 U.S. Census report on income in the United States uses median income
to describe the average income. Why does the report use median income instead
of mean income to represent the average income?

U.S. Male and Female Earnings

90 77 percent
(thousands of 2009 dollars) 80 Recession
Female-to-male
earnings ratio
70
60 $47,127
Earnings

50
40 Earnings of men
30
Earnings of women
20 $36,278
10
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Year

SOLUTION
The mean annual household income in the United States was about $67,976 in
2009. The median household income was $49,777. The circle graph below helps
explain the discrepancy between these two averages. The very high incomes in the
top 20% caused the mean to overestimate the typical household income. Because
the median is not as strongly affected by outliers as the mean, it is used to measure
average income.
Mean Household Income

Bottom 20%: 4th 20%:

Mean â $11,552 Mean â $29,257
3.4% 3rd 20%:
8.6%
Mean â $49,534
14.6%

Each year, the U.S. Census

Bureau issues a report called
Income, Poverty, and Health 50.3% 23.2%
Insurance Coverage in the 2nd 20%:
Top 20%: Mean â $78,694
United States. This one was Mean â $170,844
issued in September 2010.

Checkpoint Help at

Discuss other instances where the median is a better measure of the average value
than the mean.
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9.2 Describing “Average” 417

Analyzing Data
T following gives the estimated IQs of 12 recent presidents of the United States.
The
IIt also gives their placements in the 2010 Siena College Research Institute
Presidential Ranking Survey (with 43 being the lowest and 1 being the highest).
P
President IQ Poll Rating
Franklin Roosevelt 140 1
Harry Truman 128 9
Dwight Eisenhower 132 10
John Kennedy 151 11
Lyndon Johnson 128 16
Richard Nixon 131 30
Gerald Ford 127 28
Jimmy Carter 145 32
Ronald Reagan 130 18
George H. Bush 130 22
William Clinton 149 13
George W. Bush 125 39
Assuming these data are valid, which of the following statements are valid?
A
In Malcolm Gladwell’s book a. On average, U.S. presidents have above average IQs.
Outliers: The Story of Success, b. As president, the higher your IQ, the more popular you will be.
the position of being an “outlier”
is enviable. When using the mean SOLUTION
as an average, however, outliers
can cause undesired effects. a. This statement is certainly valid. Standardized IQ scores follow a distribution
with an average IQ of 100. The median of the above IQs is about 131. The
mean is about 135.
b. The scatter plot compares estimated IQs with poll ratings. If the statement
were true, the scatter plot would show a pattern that moved from the lower left
to the upper right. So, according to the above list, this conclusion is not valid.

Poll Ratings
g and IQs of 12 Recent U.S. Presidents
50
45
40
35
Poll rating

30
25
20
15
10
5
0
0 25 50 75 100 125 150 175 200
Estimated IQ

Checkpoint Help at

Suppose a president with an IQ of 200 is elected. How does this affect the mean
and the median of the data?
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418 Chapter 9 The Mathematics of Description

9.2 Exercises
Height The double stem-and-leaf plot shows the heights of players
rs
on a women’s basketball team and players on a men’s basketball
team. In Exercises 1– 8, use the double stem-and-leaf plot.
(See Examples 1 and 2.)

Player Height
Women’s Team Stem Men’s Team
9 8 5 6
7 6 5 5 4 4 3 2 7 2 4 4 6 7 7 8 9 9
8 0 1 2 3 4 4 5

Key:
Women’s: 5 | 6 | = 65-inch-tall woman
Men’s: | 7 | 2 = 72-inch-tall man
M

1. Compare the mean of each data set.

2. What is the mode of each data set?

3. Compare the median of each data set.

4. What percent of the players on the men’s team are at least

7 feet tall?

5. Which measure of central tendency best describes the average

height of the players on the women’s basketball team?

6. Which measure of central tendency best describes the average

height of the players on the men’s basketball team?

7. Suppose each player’s height on the women’s team is 2 inches

greater. How does this affect the mean and the median of the data?

8. The 5 starting players on the men’s team have a mean height

of 80.2 inches. Find the heights of 5 possible starters.

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9.2 Describing “Average” 419

Annual Cost of College The box-and-whisker plot shows the annual cost for undergraduate
tuition, room, and board at 21 public and private colleges. In Exercises 9–12, use the
box-and-whisker plot. (See Example 3.)

Annual Cost of College

Minimum: $4850 Median: $16,200 Maximum: $41,350
Mean: $18,713

Lower quartile: $12,500 Upper quartile: $24,500

$0 $10,000 $20,000 $30,000 $40,000 $50,000

Cost

9. How many colleges have an annual cost between $12,500 and $24,500?

10. Are there more colleges above or below the mean annual cost? Explain your reasoning.

11. The annual costs are divided into four quartiles, each of which contains about 25% of the data.
In which quartile are the data most spread out? least spread out? Explain your reasoning.

12. The annual cost to attend college A is $10,780. In which quartile does this college belong?

Annual Cost of College The color-coded histogram shows the data from the box-and-whisker
plot above in a different way. In Exercises 13–16, use the histogram. (See Example 4.)

Annual Cost of College

Public 4 yr â
Public 2 yr â
Private 4 yr â
Private 2 yr â

$0 $10,000 $20,000 $30,000 $40,000 $50,000

Cost

13. Can you use the histogram to find the mean, median, or mode of
the annual costs? Explain your reasoning.

14. Which annual cost interval contains the most data values?

15. How many of the colleges have an annual cost less than $20,000??

16. Which type of college seems to be the most expensive?

Explain your reasoning.

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420 Chapter 9 The Mathematics of Description

Deadliest Earthquakes The double line graph shows the world’s deadliest earthquake for each year
from 1990 through 2010. In Exercises 17–22, use the double line graph. (See Examples 5 and 6.)

Deadliest Earthquakes (1990–2010)

250,000 10.0
9.0
200,000 8.0
7.0

Magnitude
Fatalities

150,000 6.0
5.0
100,000 4.0
3.0
50,000 2.0
1.0
0 0
1990 1995 2000 2005 2010
Year

17. Which years appear to be outliers when considering the numbers of fatalities?

18. Which years appear to be outliers when considering the magnitudes of the earthquakes?

19. Find the effect of outliers on averages.

a. Use a spreadsheet to find the mean and the median number of fatalities.

b. Use a spreadsheet to find the mean and the median number of fatalities
without the two most significant outliers.

c. Do these outliers have a greater effect on the

mean or the median? Explain your reasoning.

20. How do outliers affect the mode of a data set?

21. Does the mean or the median number of fatalities better

describe the average number of fatalities each year?
Explain your reasoning.

22. Determine whether each statement is valid.

a. On average, the most fatal earthquakes have a
magnitude around 6.0.

b. The number of fatalities from an earthquake

depends on the earthquake’s magnitude.

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9.2 Describing “Average” 421

Extending Concepts
Printer Speeds A consumer testing service is determining the printing speed, in
pages per minute (ppm), of three printers. The table shows the results of five print
jobs for each printer. In Exercises 23 and 24, use the table.

Job 1 Job 2 Job 3 Job 4 Job 5

Printer A (ppm) 28 32 30 27 32

Printer B (ppm) 30 28 34 28 32

Printer C (ppm) 28 31 32 27 31

23. Each printer has a different manufacturer, and each manufacturer advertises that its printer
has a faster average printing speed than its competitors’ printers. Which measure of central
tendency (mean, median, or mode) would each of the following manufacturers use to
support its claim? Explain your reasoning.
a. the manufacturer of printer A
b. the manufacturer of printer B
c. the manufacturer of printer C

(maximum data value) + (minimum data value)

24. The midrange is ———— .
2
a. Which printer has the fastest average speed according to the midrange?
b. Why do you think the midrange is rarely used as a measure of central tendency?

Printer Prices The table below shows the prices of all the printers in stock at an
electronics store. In Exercises 25–28, use the table.

Prices of Printers in Stock

$45 $89 $72 $118 $68 $89

$105 $76 $95 $182 $120 $48

$68 $89 $128 $52 $108 $99

25. Make a box-and-whisker plot of the printer prices.

26. Describe the shape of the distribution.

27. Make a histogram of the printer prices.

28. What new information does the histogram give you about the distribution?

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422 Chapter 9 The Mathematics of Description

9.1–9.2 Quiz

World Education Rankings In Exercises 1–8, use the chart and the following information.

The chart shows the world education

rankings from the Organisation for
Economic Co-operation and Reading Math Science
Development (OECD).

1. Describe the information presented

in the rankings chart.

2. Are the countries listed in order

of greatest total score? Explain
your reasoning.

3. Do you agree with the following

comment? Explain your reasoning.

COMMENT:
Overall, the United States scored
higher than Germany.

4. Did Austria or Poland score higher

in math? Explain your reasoning.

5. Do the following for each column

in the chart.
a. Use the chart to find the median
and mode.
b. Use a spreadsheet to find
the mean.

6. Which measure of central tendency

best describes the average of the math
scores? Explain your reasoning.

7. Describe the distribution of

math scores.

Math Scores

400 450 500 550 600

Score

8. How might a politician or

policymaker use this chart?

Copyright © Larson Texts, Inc. All rights reserved.

Chapter
p 9 Project
j Math & the Electoral College
g 423

Math & the Electoral College

PROJECT: Modeling a Presidential Election

The Electoral College consists of the electors who formally elect the
president of the United States. Since the 1964 election, there have
been 538 electors. The map below shows the number of electors for
each state. These numbers were determined by the 2010 Census.
If a candidate wins the popular vote in a state, he or she gets all the
electoral votes for that state.

1. Use the Electoral College Simulator at [Link]. It is possible to win the

presidential election and not win the popular vote. This has happened four times in the
United States (see page 114). The simulator below shows an imaginary election in which
the winner receives 52.8% of the electoral votes, but only 28.8% of the popular vote. Use
the simulator to find the minimum popular vote that a candidate can receive and still win.

12 3 4 4 National Electoral Vote

3 3
7 10 11
4 3 10 29
284
3 4
16 7 254
6 5 6 20 14
6 9 20 11 18 3 0% 20% 40% 60% 80% 100%
6 5 13 10
55 10 8
11 15 3
11 5 7 6 9 National Popular Vote (thousands)
6 9 16
3 38 8 36455
29 90131
4
0% 20% 40% 60% 80% 100%

State Electoral 52.4% Popular Vote 47.6%

Missouri 10
0% 20% 40% 60% 80% 100%
Select a state. 100% 80% 60% 40% 20% 0%
Then adjust the
popular vote in
the state.

2. Is it possible to become president and not have a single person west of the Mississippi River
vote for you? Use the simulator to verify your answer.

3. Is it possible to win the election without carrying one of the “big” states (California, Texas,
Florida, New York, Pennsylvania, Illinois, Ohio, Michigan, Georgia)? Use the simulator to
verify your answer.

4. Why was the Electoral College created? Do you agree with this system? If not, describe a
different system that you think would be better. For instance, do you think the system used
in Canada is better? Explain your reasoning.

Copyright © Larson Texts, Inc. All rights reserved.

424 Chapter 9 The Mathematics of Description

9.3 Describing Dispersion

Use standard deviation to describe the dispersion of a data set.
Use standard deviation to describe a data set that is normally distributed.
Compare different types of distributions.

Standard Deviation
Standard deviation is a measurement that shows how much variation or
Study Tip dispersion there is from the mean. A small standard deviation indicates that the
In statistics, the rule at the data are clustered tightly around the mean. A large standard deviation indicates
right is called Chebyshev’s that the data are spread out over a large range of values.
inequality. Its estimates
are conservative. On
page 426, you will see a Standard Deviation and Dispersion
stronger result for data
In any data set, at least 75% of the values lie within 2 standard deviations of
sets that follow a normal
the mean. At least 89% lie within 3 standard deviations, and at least 94% lie
distribution.
within 4 standard deviations.

Describing Dispersion
The histogram shows the distribution of the lengths of 45 cuckoo eggs.
a. Describe the dispersion.
p
b. What percent of the lengths lie within 2 standard deviations of the mean?

Cuckoo Eggs
12
Mean â 22 mm
10
Standard deviation â 1 mm
Frequency

8
6
4
2
0
20 21 22 23
Egg length (mm)
Rather than building its own nest,
the common cuckoo lays its eggs
in the nests of other birds. When
SOLUTION
it hatches, the cuckoo chick
1
eventually pushes the other eggs a. 27 of the lengths lie within — of a standard deviation of the mean.
2
and chicks from the nest.
b. 41 of the lengths, or about 91%, lie within 2 standard deviations of the mean.

Checkpoint Help at

The data set for Example 1 is available at [Link]. Use the Histogram
Generator at [Link] to display the data. Experiment with different
interval widths. The histogram above uses an interval width of 0.25. Try using an
interval width of 0.5.

Copyright © Larson Texts, Inc. All rights reserved.

9.3 Describing Dispersion 425

Describing Dispersion
The histogram shows the distribution of the mean daily temperatures at
McGuire Air Force Base from 1955 through 2010. Describe the dispersion.

Mean Daily Temperature (1955–2010)

3500
3250 Mean â 53.8
3000 Standard deviation â 17.2
2750
2500
2250

Frequency
2000
1750
1500
1250
1000
750
500
250
0
1 17 33 49 65 81 97
Temperature (íF)

SOLUTION
The vast majority of the temperatures lie within 1 standard deviation of the mean.
That is, they range from 36.6°F to 71°F.

Checkpoint Help at

The line graph shows 101-day moving averages of the data represented in the
histogram. The temperatures are plotted from 1955 through 2010. Suppose you
are doing a study on global warming. Which of the two graphic displays would
be more helpful? Explain your reasoning.

101-Day Moving Averages

60
Temperature (íF)

58
56
54
52
50
48

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Date

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426 Chapter 9 The Mathematics of Description

Standard Deviation and Normal Distribution

In many naturally occurring data sets, a histogram of the data is often bell shaped.
In statistics, such data sets are said to have a normal distribution.

Standard Deviation and a Normal Distribution

A normal distribution is symmetrical about its mean. 68.2% (about two-thirds)
of the data lie within 1 standard deviation of the mean. 95.4% of the data lie
within 2 standard deviations of the mean.

34.1% 34.1%

0.1% 2.2% 13.6% 13.6%

2.2% 0.1%

4 SD 3 SD 2 SD 1 SD Mean 1 SD 2 SD 3 SD 4 SD

Analyzing a Famous Normal Distribution

A famous data set was collected in Scotland in the mid-1800s. It contains the
chest sizes (in inches) of 5738 men in the Scottish Militia. What percent of the
chest sizes lie within 1 standard deviation of the mean?
Chest Size Number of Men
33 3 Scottish Militiamen
34 18 1200
Mean â 40 in.
35 81 SDâ 2 in.
36 185 1000
37 420
38 749 800
Frequency

39 1073
40 1079 600
41 934
42 658 400
The Thin Red Line e is a painting 43 370
by Robert Gibb. It was painted 44 92 200
in 1881. Only the left portion of 45 50
the painting is shown above. 46 21 0
33 35 37 39 41 43 45 47
47 4
48 1 Chest size (inches)

SOLUTION
The number of chest sizes within 1 standard deviation of the mean is
749 + 1073 + 1079 + 934 + 658 = 4493. This is about 78.3% of the total,
which is somewhat more than the percent predicted by a normal distribution.

Checkpoint Help at

What percent of the chest sizes lie within 2 standard deviations of the mean?
Copyright © Larson Texts, Inc. All rights reserved.
9.3 Describing Dispersion 427

Comparing Distributions
The graphs show the distributions of samples of heights of adult American males
and females. There are 250 people in each sample.

a. What is the significance of the smaller standard deviation for females?

b. Estimate the percent of male heights between 67 inches and 73 inches.

Adult Male Heights

50
Mean â 70 in.
40
SD â 3 in.
Frequency 30

20

10

0
55 60 65 70 75 80 85

Height (inches)

Adult Female Heights

50
Mean â 64 in.
40
SD â 2.5 in.
Frequency

30

20

10

0
55 60 65 70 75 80 85
Height (inches)

SOLUTION
a. Standard deviation is a measure of dispersion. The larger the standard
deviation, the more the data are spread out. So, if these two samples are
representative of male and female heights in the United States, you can
conclude that male heights have a greater variation than female heights.

b. The data for male heights appear to be normally distributed. If this is true,
then you can conclude that about 68% of adult male heights are between
67 inches (5' 7") and 73 inches (6' 1").

Checkpoint Help at

In a study, Timothy Judge and Daniel Cable found that each additional inch
of height is worth an extra $789 per year in salary. According to Judge,
“Height matters for career success.” Do you agree with Judge’s claim? Explain.

Copyright © Larson Texts, Inc. All rights reserved.

428 Chapter 9 The Mathematics of Description

Comparing Different Types of Distributions

While normal distributions (bell-shaped) do occur commonly in real life, there are
other types of distributions. Here are three of them.

Mean lies between Mean lies to the Mean is approximately

the two modes right of the equal to the median
Mode Mode
median

Bimodal Distribution Right-Skewed Distribution Flat Distribution

Comparing Distributions
The histograms show the distributions of game lengths (in number of turns) when
there are two players. Describe the differences in the distributions.

Normalized Distribution of Game Lengths

0.2
Frequency

Cootie
0.1

0
0 20 40 60 80 100
0.2
Frequency

Chutes and Ladders

0.1

0
0 20 40 60 80 100
0.2
Frequency

Candyland
0.1

0
0 20 40 60 80 100
Number of turns

SOLUTION
Candyland tends to take the most turns to finish. Chutes and Ladders tends to take
the least.

Checkpoint Help at

Suppose you work in the marketing department for a game company. How would
you use the information in Example 5 to target different age groups? Explain.
Copyright © Larson Texts, Inc. All rights reserved.
9.3 Describing Dispersion 429

Analyzing Bimodal Distribution

The graph shows the distribution of the full-time salaries of 22,665 people
who graduated from law school in 2006. How would you explain the
bimodal distribution?

Full-Time Salaries
12
11 Median Salary
10 $62,000
9
8

Percent
7
6
5
4
3
2
1
0
10,000 35,000 60,000 85,000 110,000 135,000 160,000 185,000
Annual Salary

Employed graduates from the law school class of 2006 took the following types
of jobs: private practice (55.8%), business (14.2%), other government (10.6%),
judicial clerk (9.8%), public interest (5.4%), academic (1.7%), military (1.1%),
and unknown (1.3%).

SOLUTION
According to the National Association for Law Placement (NALP), 71% of
employed graduates from the class of 2006 took jobs at small firms (50 or fewer
lawyers) or in nonfirm settings. Only 20% took jobs at large firms (more than
100 lawyers).
The bimodal distribution represents a cluster of lawyers at small and midsize
firms earning between $40,000 and $50,000 and a cluster of lawyers at large firms
earning between $135,000 and $145,000.

Checkpoint Help at
Law schools are ranked each
year. One of the recent rankings Suppose that you combine the data from the two data sets in Example 4 into
by U.S. News and World Report one data set. What will the histogram look like? Explain how you can discover
listed the following as the top five two (or more) subpopulations within a given larger population.
law schools in the United States
(with full-time tuition). Adult Male Heights Adult Female Heights
50 50
1. Yale University ($50,750) Mean â 70 in. Mean â 64 in.
Frequency

Frequency

40 40
2. Harvard University ($45,450) SD â 3 in. SD â 2.5 in.
30 30
3. Stanford University ($46,581)
20 20
4. Columbia University ($50,428) 10 10
5. University of Chicago ($45,405) 0 0
55 60 65 70 75 80 85 55 60 65 70 75 80 85
Height (inches) Height (inches)
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430 Chapter 9 The Mathematics of Description

9.3 Exercises
Rainbow Trout Eggs The histogram shows the distribution of the diameters of 100 rainbow trout
eggs. In Exercises 1–3, use the histogram. (See Examples 1 and 2.)

Rainbow Trout
20
Mean â 4.31 mm
16
SD â 0.25 mm
Frequency

12

0
3.6 3.7 3.8 3.9 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 5.0

Egg diameter (mm)

1. Describe the dispersion.

2. What percent of the diameters lie within 2 standard deviations of the mean?

3. What percent of the diameters lie within 3 standard deviations of the mean?

Temperatures The histogram shows the distribution of the daily high temperatures in Pittsburgh
for 2010. In Exercises 4 – 6, use the histogram. (See Examples 1 and 2.)

Pittsburgh Daily High Temperatures

100
90 84
Mean â 61.3íF
80
SD â 21.5íF
70
Frequency

60 55 58
50
40 36 40
40 33
30
20 16
10 3
0
10 20 30 40 50 60 70 80 90 100

Temperature (íF)

4. Describe the dispersion.

5. What percent of the temperatures lie within 1 standard deviation of the mean?

6. What percent of the temperatures lie within 2 standard deviations of the mean?

Copyright © Larson Texts, Inc. All rights reserved.

9.3 Describing Dispersion 431

Factory Employees The graph shows the distribution of the years worked by the
1820 employees of a cereal factory. In Exercises 7–10, use the histogram. (See Example 3.)

Employees of a Cereal Factory

225
200
200 182
Mean â 10.2 yr
175 164
SD â 4.1 yr 151
Frequency

150 137
127
125 109
99 106
100 84 91
75 69 66
55 51
50 36 42
25
25 15 11
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Years worked

7. Does this data set have a normal distribution?

Explain your reasoning.

8. What percent of the employees lie within 1 standard

deviation of the mean?

9. What percent of the employees lie within 2 standard deviations of the mean?

10. Compare the percents in Exercises 8 and 9 with the percents given by the
normal distribution.

Cereal The graphs show the distributions of samples of weights of boxes of cereal
filled by two machines. In Exercises 11 and 12, use the histograms. (See Example 4.)

Machine 1 Machine 2
16 12
Mean â 12.4 oz Mean â 12.4 oz
14
SD â 0.2 oz 10 SD â 0.1 oz
12
Frequency

8
Frequency

10
8 6
6
4
4
2
2
0 0
12.0 12.3 12.6 12.9 12.15 12.35 12.55 12.75

Weight (ounces) Weight (ounces)

11. What is the significance of the smaller standard deviation for machine 2?

12. The boxes must weigh at least 12.2 ounces. Estimate the percent of boxes from each
machine that pass the weight requirement.
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432 Chapter 9 The Mathematics of Description

SAT Scores The histograms show the distributions of SAT scores for mathematics and writing for
males and females in a recent year. In Exercises 13 and 14, use the histograms. (See Example 5.)

Male Mathematics SAT Scores Female Mathematics SAT Scores

0.040 0.045
Mean â 534 Mean â 500
0.035 Median â 530 0.040
Median â 490
0.030 Mode â 500 0.035 Mode â 460

Probability
Probability

0.030
0.025
0.025
0.020
0.020
0.015
0.015
0.010 0.010
0.005 0.005
0 0
200 300 400 500 600 700 800 200 300 400 500 600 700 800
Score Score

Male Writing SAT Scores Female Writing SAT Scores

0.045 0.045
Mean â 486 Mean â 498
0.040 0.040
Median â 480 Median â 490
0.035 Mode â 460 0.035 Mode â 460
Probability
Probability

0.030 0.030
0.025 0.025
0.020 0.020
0.015 0.015
0.010 0.010
0.005 0.005
0 0
200 300 400 500 600 700 800 200 300 400 500 600 700 800
Score Score

13. Describe the differences in the distributions of mathematics SAT scores for males and females.
Describe the differences in the distributions of writing SAT scores for males and females.

14. Describe the differences in the distributions of mathematics SAT scores and writing SAT scores for males.
Describe the differences in the distributions of mathematics SAT scores and writing SAT scores for females.

SAT Study Hours at a School

Test Preparation The histogram
30,000 26,100
shows the distribution of the total 25,000 22,620 23,490
numbers of hours students at a school 20,000 19,140 18,270
Hours

17,400
study for the SAT over 12 months. 15,000 13,920 12,180
13,920
11,310
9570
In Exercises 15 and 16, use the 10,000 6960
histogram. (See Example 6.) 5,000
0
15. What are the two modes of this Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
bimodal distribution? How would Month
you explain the bimodal distribution?

16. What percent of the study hours are in October?

Copyright © Larson Texts, Inc. All rights reserved.

9.3 Describing Dispersion 433

Extending Concepts
Hodgkin Lymphoma The histogram shows the distribution of the ages at which
Age Population
people were diagnosed with Hodgkin lymphoma in a recent year. The table
shows the population of the United States for each age group in the same year. 5–9 20,313,416
In Exercises 17 and 18, use the histogram and the table. 10–14 20,103,526
15–19 21,628,099
Hodgkin Lymphoma 20–24 21,322,253
6
4.9 5.1
25–29 21,441,834
Rate per 100,000

5 4.5 4.3 4.4 4.2 30–34 19,515,671

3.9 3.9
4
3.0 3.1 3.0 3.0
35–39 20,846,774
3 2.5 2.5 2.6 40– 44 21,394,190
2
1.3 45– 49 22,802,020
1 0.5
50–54 21,431,624
0
55–59 18,541,377
9

4
à
–1

–1

–2

–2

–3

–3

–4

–4

–5

–5

–6

–6

–7

–7

–8
5–

85
50

60
35

40

45

55

65

75
10

15

20

25

30

70

80
60–64 15,081,608
Age 65–69 11,332,535
70–74 8,806,448
75–79 7,385,163
17. The distribution of the ages in the graph is bimodal. How would you explain this?
80–84 5,825,975
18. Use the rates and the populations to create a histogram that estimates the number 85+ 5,449,770
of people diagnosed with Hodgkin lymphoma for each age group. Is the histogram
bimodal? Explain.

Standard Deviation The formula for the sample standard deviation of a data set is given by

√
——2
(Σ ) x
Σ x2 − — n
s= ——
n−1
where x represents each value in the data set and n is the number of values in the data set.
The symbol Σ indicates a sum of values. So, Σ x is the sum of the data values, and Σ x2 is
the sum of the squared data values. In Exercises 19 and 20, complete the table and then
use the formula to find the sample standard deviation of the data set.
19. 20.
x x2 x x2
16 33
12 24
23 27
20 26
18 30
15 29
18 26
19 31
34
Σx = Σ x2 = 20

Σx = Σ x2 =
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434 Chapter 9 The Mathematics of Description

9.4 Describing by Sampling

Use a randomly chosen sample to describe a population.
Determine whether a sample is representative of a population.
Determine a sample size to obtain valid inferences.

Inferring from a Sample

You can best describe any population when you have data for the entire population.
Every 10 years, the U.S. Census Bureau attempts to do this. It is costly. The 2010
Census cost the United States $13.1 billion!
A complete census is often unpractical. So, governments, researchers, and
businesses attempt to describe populations by taking a representative sample.
You can be assured that a sample is representative if it is randomly chosen and
large enough.

Inferring from a Sample

If a sample is randomly taken from a population, then the sample mean can
be used to estimate the population mean, given the following limitations.
Study Tip Estimated mean of population
To obtain smaller margins
of error, increase the size of Margin of error
the sample.

90%, 95%, or 99% confidence level

Estimating a Population Mean by Sampling

T histogram shows the
The
Male Black Bears
ddistribution of the shoulder
20
hheights of a sample of 18 Mean â 80 cm
440 male black bears in 16 SD â 12 cm
Frequency

14
Shoulder height

Great Smoky Mountains

G
12
National Park. Use a 90%
N 10
cconfidence level and a 95% 8
cconfidence level to estimate 6
4
the population mean
th 2
sshoulder height. 0
40 50 60 70 80 90 100 110 120

Shoulder height (cm)

SOLUTION
S
Using a confidence interval calculator,
U l l you can obtain
b i the
h following.
f ll i

• 90% Confidence level: The population mean is 80 cm ± 3.1 cm.

• 95% Confidence level: The population mean is 80 cm ± 3.7 cm.

Checkpoint Help at

Use the Confidence Interval Calculator at [Link] and a 99%

confidence level to estimate the population mean shoulder height.
Copyright © Larson Texts, Inc. All rights reserved.
9.4 Describing by Sampling 435

Here is the basic idea of statistical sampling.

1. Take a representative sample of the population.
2. Find the mean and the standard deviation of the sample.
3. Determine how confident you want to be of your inference (90%, 95%, 99%).
4. Use a confidence interval calculator to determine the margin of error.
5. Infer that the mean of the population is equal to the mean of the sample
(± the margin of error).
This process is called statistical inference.

Key:
Red â chosen

Population Take a Collect and Make inferences

representative analyze data about the
sample. about the population.
sample.

Estimating by Sampling

In 1879, Albert Michelson

conducted an experiment Speed of Light
to measure the speed of 35
Mean â 299,852 km/sec
light. He conducted the 30 SD â 79 km/sec
experiment 100 times
25
and obtained the data
Frequency

represented in the 20
histogram. Use a 95% 15
confidence level to
estimate the speed 10
of light. 5

0
299,600 299,700 299,800 299,900 300,000 300,100
SOLUTION
Albert Michelson and Albert Speed (km/sec)
Einstein met at Mount Wilson Using a confidence
Observatory in 1931, shortly interval calculator and a
before Michelson’s death that 95% confidence level, you can infer that the speed of light is
same year. 299,852 kilometers per second ± 15 kilometers per second.
In 1926, Michelson improved his estimate to 299,796 ± 4 kilometers per second.
The accepted value today is 299,792.458 kilometers per second.

Checkpoint Help at

A researcher records the temperature of 130 people. The mean of the sample is
98.25°F and the standard deviation is 0.73°F. Does this study allow for the
accepted human body temperature of 98.6°F? Explain your reasoning.

Copyright © Larson Texts, Inc. All rights reserved.

436 Chapter 9 The Mathematics of Description

Determining Whether a Sample is Representative

Statistical inference only applies when the sample is randomly chosen from
the population. Even then, there may be other factors that make the sample
unrepresentative. For a sample to be random, each member of the population
must have an equal chance of being chosen.

Key:
Red â chosen

Random Sample Nonrandom Sample

Obtaining a sample that is truly representative is a major problem faced by

researchers, polling organizations, and market research departments.

Analyzing How a Poll Can Go Wrong

Comment on the following article from NBC News.

“When there’s plentiful public polling and stable national trends to base their
assumptions upon, their prognostications are usually more or less close to the mark.
But politics is unpredictable, and pollsters use different methods to determine who’s
up and who’s down. Every once in a while, they get it wrong.
The famous erroneous 1948 ‘Dewey defeats Truman’ banner headline in the
first edition of the Chicago Tribune was the result of polls and conventional wisdom
that turned out to be dramatically off base. After Los Angeles Mayor Tom Bradley’s
unanticipated loss in the 1982 California governors’ race, many blamed racial bias
undetected in public opinion polls. After Barack Obama’s dramatic win in the Iowa
caucuses in 2008, the media’s overwhelming assumption that he would continue his
march to victory days later in New Hampshire was due to polling. Those assumptions
were shattered when Hillary Clinton wound up winning—prompting weeks of media
navel-gazing and questions of ‘how did we get it so wrong?’ ”

SOLUTION
There are many reasons a poll can go wrong. Here are a few.
On election night in 1948, the • The people being polled do not represent a random selection from the
press deadline for the Chicago population.
Tribune required that the
first post-election issue go to • The questions in the poll can be leading or confusing, as in “Do you plan
to vote for Proposition 4, which is against ownership of pit bulls?”
press before the states had
reported many of their results. • The people being polled may not know how they will react to a product or
Conventional wisdom, supported how they plan to vote.
by polls, predicted that Dewey
would win. So, the Tribune went to
Checkpoint Help at
press with the incorrect headline
“DEWEY DEFEATS TRUMAN.”
What other reasons might cause a poll to go wrong?

Copyright © Larson Texts, Inc. All rights reserved.

9.4 Describing by Sampling 437

When the population consists of people, obtaining a representative sample can be

difficult. For various reasons, the sample can be biased, which means that it is not
representative of the entire population.

Analyzing Biased Samples

Why might the following samples be biased?
a. In 1936, The Literary Digest used the results of more than two million responses
to a survey to predict that the Republican presidential candidate, Alfred Landon,
would defeat the incumbent, Franklin Roosevelt, by a large margin.
b. In 2010, the Pew Research Center conducted a pre-election survey of likely
voters and found Republican candidates leading by 12 points, 51% to 39%.
c. In the 1940s, the Metropolitan Life Insurance Company introduced its standard
height-weight tables for men and women. To create the tables, the company
used the weights of people who were insured with the company and lived
the longest.

SOLUTION
a. The Literary Digest primarily collected its sample from people who, during the
depression, could afford cars, phones, and magazine subscriptions. This sample
overrepresented higher income people, who were more likely to vote for the
Republican candidate. Also, Landon supporters may have been more likely
to return the survey than Roosevelt supporters, creating what is called a
nonresponse bias. By contrast, a poll by George Gallup’s organization
successfully predicted the result because its sample was more representative of
the voting population.
b. In a sample that included both landline and cell phone interviews, the
Republican lead was only 6 points, 48% to 42%. Based on this and other
surveys, the Pew Research Center concluded that landline-only surveys tend
to be biased toward Republicans.
c. The sample may have been biased because it contained only the weights of
people who were insured with the company.

Alfred Mossman “Alf” Landon Men’s Weight Percentiles Women’s Weight Percentiles
(1887–1987) was the 26th 280 260
governor of Kansas. He was 260 240
the Republican nominee in the 95th 95th
Weight (pounds)

Weight (pounds)

240 220
1936 presidential election. 220 75th 200
75th
200 50th 180
180 160 50th
160 140
25th
140 120 25th
5th
120 100 5th
100 80
0 0
20 40
4 60 80 20 40 60 80
Age (years) Age (years)

Checkpoint Help at

Give another example of a biased sample.

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438 Chapter 9 The Mathematics of Description

Sampling and Market Research

The following are five types of sampling used by market research departments.

1. Surveys: The wording of the questions is critical. Surveys can be in person,

Study Tip or via telephone, mail, or Internet.
The data from focus groups
and personal interviews are 2. Focus groups: Focus groups involve a moderator and questions that lead to a
more subjective than the discussion among participants.
data from surveys.
3. Personal interviews: Personal interviews are similar to focus groups and
involve open-ended questions.
4. Observations: Observations include purchasing habits and product usage
of consumers.
5. Field trials: Field trials involve selling a product at selected locations to get
an idea of how it will perform in the market.

Determining a Sample Size

You work for the
market research
department of a
company.
cosmetics comp
identify
You want to iden
characteristics oof
men who are
likely to buy men’s
me
products.
personal care pr
You send a free sample
of two of the products
pro to men and ask them
to respond to an online survey. How many samples
should you send to obtain reliable results?

SOLUTION
Suppose you want a confidence level of 90% and a margin of error of 5%.
Using the Sample Size Calculator at [Link], you can
determine that you need 271 completed surveys.
Suppose you think that 10% of the men who receive the
sample will take the time to use it and respond to the online
survey. This means that you should send the sample products
to about 3000 men. (You still have to decide how to randomly
choose 3000 men to obtain a representative sample.)

Checkpoint
Checkp Help at

How would you

y conduct market research on the men’s personal care products?

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9.4 Describing by Sampling 439

Analyzing a Historical Example of Sampling

Edward Bernays,
Be a nephew of Sigmund Freud, used some of his uncle’s ideas
psychology to influence public opinion. In one well-known campaign,
about ps
Bernays took an assignment from a large bacon producer, Beechnut
Berna
Packing
Pa Company. Rather than try to take away business from
Beechnut’s competitors, Bernays decided to try to change America’s
attitude toward breakfast. At the time, Americans tended to eat small
breakfasts, often consisting of juice, toast, and coffee.
In the 1920s, Bernays persuaded a well-known physician in
New York to write to his colleagues and ask whether they
recommended light breakfasts or hearty breakfasts. The result was
“hearty.”
“ Newspapers spread the message. As a result of Bernays’s
campaign,
cam the phrase “bacon and eggs” became synonymous with
“American
“Ame breakfast.”
Do you think
t that his claim that doctors recommend a hearty breakfast
is valid?

SOLUTION
There are two ways to view this question.

• Is Bernays’s implied claim that a big breakfast is healthy true?

• Is the claim statistically valid based on his survey of doctors?

Today, most people in the fitness and health fields recommend that people eat
breakfast, but there is no consensus on what size it should be.
Is the claim statistically valid based on his survey? The answer is unknown
because you do not know the sample size, the form of the questions, or the
responses. However, based on other campaigns that Bernays ran, it is clear that
he was not as concerned with the truth as he was with the results.

Checkpoint Help at

Which of the following questions might produce more people saying they believe
Australians are more sports minded than Americans? Explain.
a. Do you agree that Australians are more sports minded than Americans?

Agree Disagree

b. Do you think that Australians are more sports minded than Americans?

Yes No

c. Do you believe that Australians are more sports minded than Americans,
less sports minded, or about the same?

More Less About the same

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440 Chapter 9 The Mathematics of Description

9.4 Exercises
IQ Scores The histogram shows the distribution of the IQ scores of 50 adults.
In Exercises 1 and 2, use the histogram. (See Examples 1 and 2.)

IQ Scores
12
Mean â 99
10
SD â 18
Frequency

0
60 70 80 90 100 110 120 130 140

IQ score

1. Use the Confidence Interval Calculator at [Link] and

a 95% confidence level to estimate the population mean IQ score.

2. Repeat Exercise 1 using a sample size of 100. Compare the confidence

intervals. What happens when the sample size increases? Explain.

Fuel Efficiency The graph shows the distribution of the fuel efficiencies of
60 sedans. In Exercises 3 and 4, use the histogram. (See Examples 1 and 2.)

Sedan Miles per Gallon

10
9
Mean â 23.3 mpg
8
SD â 3.9 mpg
7
Frequency

6
5
4
3
2
1
0
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
Miles per gallon

3. Use the Confidence Interval Calculator at [Link] and a 90% confidence

level to estimate the population mean fuel efficiency.

4. Repeat Exercise 3 using a 99% confidence level. Compare the confidence intervals.
What happens when the confidence level increases? Explain.

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9.4 Describing by Sampling 441

Biased Samples In Exercises 5–12, explain why the sample may be biased.
Then explain how to find an unbiased sample. (See Examples 3 and 4.)
5. A research company wants to determine how many people floss
their teeth. The company asks a dentist to conduct a survey by
randomly selecting patients.

6. You want to estimate the number of students in a high school

who ride the school bus. You randomly survey 60 seniors.

7. You want to estimate the number of defective items produced

by a factory. You randomly inspect 200 items from one of the
machines in the factory.

8. A college wants to determine whether to renovate the gym or

the science lab. The college asks you to conduct a survey. You
randomly survey 30 students leaving a science club meeting.

9. A radio station wants to determine how many people in the

listening area support gun control laws. The station asks
listeners to call in and answer the survey.

10. A city wants to determine whether the residents of the city favor using tax dollars to
build a new baseball stadium. The city asks you to conduct a survey. You randomly
survey people entering a sporting goods store.

11. A mayor wants to determine whether the residents of a city support a bill providing
insurance for nursing home care. The mayor asks you to conduct a survey. You randomly
survey residents of five nursing homes in the city.

12. A research company wants to determine how many people in the United States spend at
least 1 week at the beach each year. The company surveys residents of California, Florida,
and North Carolina.

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442 Chapter 9 The Mathematics of Description

Alternative Energy You work for a research company.

You want to determine whether U.S. adults support
more funding for alternative energy. In Exercises 13 –15,
use the Sample Size Calculator at [Link].
(See Example 5.)
13. Choose a 95% confidence level and a 3% margin of
error. How many people should you survey to obtain
reliable results?

14. Repeat Exercise 13 using a 99% confidence level.

Compare the sample sizes. What happens when the
confidence level increases? Explain.

15. Repeat Exercise 13 choosing a 5% margin of error.

Compare the sample sizes. What happens when the
margin of error increases? Explain.

Biased Questions In Exercises 16 –18, determine which question might produce biased results.
Explain. (See Example 6.)
16.
a. Do you think solar panels should be installed at city hall using taxpayer money?

Yes No

b. Do you agree with most of your neighbors that it is a waste of taxpayer money
to install solar panels at city hall?

Agree Disagree

17.
a. Do you agree that the unfair policy of requiring students to do a time-consuming
community service project should be changed?

Agree Disagree

b. Do you think the policy of requiring students to do a community service project

should be kept?

Yes No

18.
a. Do you think people should recycle phone books?

Yes No

b. Do you think people should recycle old, out-of-date phone books?

Yes No

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9.4 Describing by Sampling 443

Extending Concepts
Confidence Intervals In Exercises 19–22, use the confidence interval to find the
sample mean and the margin of error.
19. An electronics magazine reports that a 90% confidence interval for the mean price
of GPS navigation systems is $178.75 to $211.87.

20. A state agency reports that a 95% confidence interval for the mean annual salaries
of employees in Colorado is $45,832 to $47,890.

21. A hospital reports that a 99% confidence interval for the mean length of stay
(in days) of patients is 5.1 to 5.9.

22. A company reports that a 95% confidence interval for the mean weight (in ounces)
of filled paint cans is 159.97 to 160.03.

Minimum Sample Size For a 95% confidence level, the minimum sample size n needed to
estimate the population mean is

( )
2
1.96s
n= —
E
where E is the margin of error and s is the population standard deviation. In Exercises 23 –26,
find the minimum sample size. If necessary, round your answer up to a whole number.
23. You want to estimate the mean weight of newborns within 0.25 pound of the population
mean. Assume the population standard deviation is 1.3 pounds.

24. You want to estimate the mean number of text messages sent per day by 18- to 24-year-olds
within 5 messages of the population mean. Assume the population standard deviation is
30 messages.

25. You want to estimate the mean number of hours of television watched per person per day
within 0.1 hour of the population mean. Assume the population standard deviation is
1.5 hours.

26. You want to estimate the mean number of minutes waiting at a department of motor
vehicles office within 0.5 minute of the population mean. Assume the population standard
deviation is 7 minutes.

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444 Chapter 9 The Mathematics of Description

9.3–9.4 Quiz

Ambulance Response Times The graph shows the distribution of the ambulance
response times for 250 emergency calls in a city. In Exercises 1– 6, use the histogram.

Response Times
45
41
40
Mean â 9.3 min
35
SD â 2.9 min 29
30
Frequency

27
25 23 24
21
20 18 17
15 14 13
10 9 9
5
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Time (minutes)

1. Does this data set have a normal distribution? Explain your reasoning.
ng.

2. What percent of the response times lie within 1 standard deviation of the mean?

3. What percent of the response times lie within 2 standard deviations of the mean?

4. Compare the percents in Exercises 2 and 3 with the percents given by the
normal distribution.

5. Use the Confidence Interval Calculator at [Link] and a 95% confidence

level to estimate the population mean response time.

6. Use the Confidence Interval Calculator at [Link] and a 99% confidence

level to estimate the population mean response time.

7. Fire Station A city wants to know whether residents will favor a tax increase for
the renovation of a fire station. You randomly survey 100 people in the neighborhood
around the fire station. Explain why the sample may be biased. Then explain how to
find an unbiased sample.

8. Hospital You work for a research company. You want to estimate the percent of
U.S. adults who have contributed to a hospital fundraiser in the past 12 months.
Use the Sample Size Calculator at [Link]. Choose a 99% confidence
level and a 5% margin of error. How many people should you survey to obtain
reliable results?

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Chapter 9 Summary 445

Chapter 9 Summary

Section Objectives How does it apply to you?

Use stacked area graphs to
You can see how related variables graphically change over
represent the changing parts of
time. (See Examples 1 and 2.)
Section 1

a whole.

Use a radar graph and an area There are many creative and unique ways to help people
graph to represent data. understand and use information. (See Examples 3 and 4.)

Not all information is represented with simple types of

Graphically represent data sets
information design, such as bar graphs, circle graphs, and
that have several variables.
scatter plots. (See Examples 5 and 6.)

Use mean, median, and mode to

Measures of central tendency are used to compare and
describe the average value of a
communicate data in real life. (See Examples 1 and 2.)
Section 2

data set.
You can use box-and-whisker plots and histograms to analyze
Read and understand box-and-
the variability and distribution of data sets. (See Examples 3
whisker plots and histograms.
and 4.)
Outliers can significantly change measures of central
Understand the effect of outliers
tendency. This could lead to using bad information for
on averages.
decision making. (See Examples 5 and 6.)

Standard deviation allows you to determine whether data

Use standard deviation to describe
values are clustered around the mean or spread out over a
the dispersion of a data set.
Section 3

large range. (See Examples 1 and 2.)

Use standard deviation to describe Many naturally occurring data sets have a normal distribution.
a data set that is normally You can use standard deviation to determine whether a data
distributed. set is normal. (See Examples 3 and 4.)

Compare different types of Not all data distributions are normal. There are other types of
distributions. distributions. (See Examples 5 and 6.)

If a sample is randomly taken from a population, then you

Use a randomly chosen sample to
can use the sample mean to estimate the population mean.
describe a population.
Section 4

(See Examples 1 and 2.)

If your sample is too small, not random, or biased, the
Determine whether a sample is
statistics from the sample will not represent the population.
representative of a population.
(See Examples 3 and 4.)

Determine a sample size to obtain The minimum sample size depends on the confidence level
valid inferences. and the margin of error chosen. (See Examples 5 and 6.)

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446 Chapter 9 The Mathematics of Description

Chapter 9 Review Exercises

Section 9.1
Religiosity In Exercises 1– 8, use the information below.

The graph shows the data from a

Gallup survey relating religiosity Religiosity
Relli
R l and Gross Domestic Product
to gross domestic product (GDP) 100
10
00
100 Indonesia
per capita. GDP is the market World of Faith
Thailand
value of the goods and services Algeria
Malaysia
Spheres for each country are sized
relative to their populations. Data
produced by a country over a Tunisia not available for all countries.
India Saudi
certain time period, usually by 90 Brazil Arabia DOMINANT RELIGION KEY
Panama
year. It is often used as a Lebanon Catholic Other Muslim Others
Malta
comparative statistic to gauge Christian
ves
aily lives

Iraq
Romania
a country’s standard of living.
Turkey
Percent who say that religion is an important part of their daily

80
Venezuela
1. Describe the variables displayed Poland
Macedonia
in the graph.
Italy
Mexico
Greece
2. Describe the information 70 Chile Croatia

presented in the graph.

Argentina United
States

3. Which country has the highest

GDP per capita? 60

Serbia
4. What is the dominant religion Ireland
Uzbekistan Israel
in France? Azerbaijan
50
Spain
5. Does the graph support the Ukraine

Kazakhstan
comment below? Explain South Korea
Canada
Lithuania
your reasoning. Switzerland
40
Germany
COMMENT: Hungary

Religiosity is highly correlated Russia

to poverty. Richer countries, in

general, are less religious. 30 Vietnam France

Britain

Japan Hong Kong

6. Are there more religious people
in Argentina or Russia? Explain 20
Denmark
your reasoning. Sweden

7. Compare the religiosity of the

United States with that of other 10
countries with high GDPs $10 $20 $25 $30 $40 $50
per capita. GDP per capita (thousands)
Source: Gallup, CIA “The World Factbook”

8. Could you use a stacked area graph Adapted from The New York Times, 9/4/2010 © 2010 The New York Times, [Link] All
rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing,
to show the information presented copying, redistribution, or retransmission of this Content without express written permission is prohibited.
in this graph? Explain your reasoning.

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Chapter 9 Review Exercises 447

Section 9.2
Unemployment Rate In Exercises 9–12, use a spreadsheet and the line graph shown.

Historical Unemployment
p y Rates (1991−2010)
12.0%

10.0% 9.6%
9.3%
8.0% 7.5%
6.9%
Rate

6.1% 5.8% 6.0% 5.8%

6.0% 6.8% 5 4%
5.4% 5.1%
5.6% 4.5% 5.5%
4.0% 4.9% 4.7% 4.6%
4.2% 4.0% 4.6%

2.0%

0.0%
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Year

9. What are the mean, median, and mode of the data presented in
the line graph?

10. Which measure of central tendency best describes the

average of the data? Explain your reasoning.

11. Which two data values are outliers?

12. Do the outliers have a greater effect on the mean or

the median? Explain your reasoning.

13. Box-and-Whisker Plot Use the box-and-whisker plot to analyze the unemployment rates.

Historical Unemployment Rates

3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

Rate (percent)

Historical Unemployment Rates

8
Frequency

14. Histogram Explain whether the 6

following statement is supported by the 4
histogram: “The unemployment rate 2
0
during most years is between 4.0%
9

9
4.

5.

6.

7.

8.

9.

and 7.0%.”
0–

0–

0–

0–

0–

0–
4.

5.

6.

7.

8.

9.

Rate (percent)

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448 Chapter 9 The Mathematics of Description

Section 9.3
Hotel Rooms The histogram shows the distribution of the numbers of hotel rooms
occupied for 150 days in a year. In Exercises 15–18, use the histogram.

Hotel Rooms
30
Mean â 125 26
25
SD â 44
20
Frequency

15 14
12
10 10
10
7 7 8 9 8
5 4 6 6
5 3 4 4
2 1 1 1 1 1
0
0 20 40 60 80 100 120 140 160 180 200 220 240
Hotel rooms occupied

15. Does this data set have a normal distribution? Explain your reasoning.

16. What percent of the days lie within 1 standard deviation of the mean?

17. What percent of the days lie within 2 standard deviations of the mean?

18. Compare the percents in Exercises 16 and 17 with the percents given by the normal distribution.

Television The histograms show the distributions of samples of hours of television

watched per day by men and women. In Exercises 19 and 20, use the histograms.

Men Women
14 14
Mean â 3.1 hr Mean â 2.5 hr
12 12 SD â 0.6 hr
SD â 0.8 hr
10 10
Frequency
Frequency

8 8

6 6

4 4

2 2

0 0
1.4 1.8 2.2 2.6 3.0 3.4 3.8 4.2 4.6 5.0 5.4 1.0 1.4 1.8 2.2 2.6 3.0 3.4 3.8 4.2 4.6 5.0
Hours Hours

19. What is the significance of the smaller standard deviation for women?

20. Estimate the percents of men and women that watch at least 4 hours of television per day.

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Chapter 9 Review Exercises 449

Section 9.4
Teacher Salaries The histogram shows the distribution of the salaries of
75 New York public school teachers. In Exercises 21 and 22, use the histogram.

New York Teacher Salaries

25
Mean â $65,467 21
20 SD â $7560
Frequency

15 14 13
12
10
7
5
5
1 2
0
45 50 55 60 65 70 75 80 5
85

Salary (thousands of dollars)

21. Use the Confidence Interval Calculator at [Link] and a

95% confidence level to estimate the population mean salary.

22. Repeat Exercise 21 for a 99% confidence level.

Biased Samples In Exercises 23 and 24, explain why the sample may
be biased. Then explain how to find an unbiased sample.
23. A politically conservative magazine wants to estimate the percent
of U.S. adults who approve of the job the president is doing. The
magazine sends the survey to readers on its mailing list.

24. A pollster wants to determine the percent of registered voters who

voted for the Republican candidate in an election. The pollster
conducts an exit poll in a primarily Republican neighborhood.

25. Political Campaign You work for a political campaign. You want to
estimate the percent of registered voters who plan to vote for your
candidate. Use the Sample Size Calculator at [Link].
Choose a 90% confidence level and a 2% margin of error. How many
people should you survey to obtain reliable results?

26. Biased Questions Determine which question could produce biased results. Explain.

a. Do you agree with most of the students that the senator should resign??

Agree Disagree

b. Do you think the senator should resign?

Yes No

Copyright © Larson Texts, Inc. All rights reserved.

10 The Mathematics of
Fitness & Sports

10.1 Health & Fitness

Compare a person’s weight, height, and body fat percentage.
Interpret and use a person’s heart rate and metabolism.
Determine factors for cardiovascular health.

10.2 The Olympics

Analyze winning times and heights in the Summer Olympics.
Analyze winning times in the Winter Olympics.
Understand Olympic scoring.

10.3 Professional Sports

Use mathematics to analyze baseball statistics.
Use mathematics to analyze football statistics.
Use mathematics to analyze statistics in other professional sports.

10.4 Outdoor Sports

Use mathematics to analyze hiking and mountain climbing.
Use mathematics to analyze kayaking and sailing.
Use mathematics to analyze bicycling and cross-country skiing.

Copyright © Larson Texts, Inc. All rights reserved.

Calories Burned During Physical Activities
30

Calories burned per minute

Male
25
Female
20

15

10

0
Walking Tennis Weight Basketball Racquetball Running Swimming XC skiing
lifting

Activity

The graph in Example 6 on page 489 compares the number of

calories burned per minute for eight activities. Why does
cross-country skiing consume so much energy?

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452 Chapter 10 The Mathematics of Fitness & Sports

10.1 Health & Fitness

Compare a person’s weight, height, and body fat percentage.
Interpret and use a person’s heart rate and metabolism.
Determine factors for cardiovascular health.

Comparing Weight, Height, and Fat Percentage

There are many different opinions about the “ideal” weight and body fat
percentage for a person of a given height. Some of the opinions are expressed
by tables, and some are expressed by formulas.

Analyzing the MetLife Height-Weight Tables

Study Tip In a criticism of the MetLife tables, Steven B. Halls, MD, said, “For very tall men
The Metropolitan Life and women, the MetLife tables suggest impossibly low weights.” As part of the
Insurance Company Height- criticism, Halls presented the following graphs. What do Halls’s graphs show?
Weight Tables are available
at [Link].
When using the tables, you Weight for Height of Men Weight for Height of Women
are wearing shoes with 21
210
1-inch heels. 200
Weight (pounds)

190 en en
m om
180 ht tw
eig gh
170 ew ei e)
e) w ram
ra
g
fram ge u mf
160
Av
e
ed ium e ra m edi
s (m Av es (
150 ta ble t abl
t Life t Life
140 Me Me
130
120
60 65 70 75 55 60 65 70
Height (inches) Height (inches)

SOLUTION
The graphs are roughly linear. The rate of increase of each graph is about
5 pounds per inch of height, as indicated by the following formulas.

Medium-framed men:
Me Weight = 125 pounds + 5 pounds per inch over 5 feet
Medium-framed women: Weight = 145 pounds + 5 pounds per inch over 5 feet
Me

Compared to average weights, the MetLife tables recommend unrealistically low

Comp
weights, especially for tall people.
weigh

Checkpoint
C Help at

Here iis another formula by Dr. G.J. Hamwi that first appeared in 1964.
Graphically compare this formula with the average weights of Americans.
Graph

Ideal Body Weight Medium-framed men:

M Weight = 106 pounds + 6 pounds per inch over 5 feet
calculators are available Medium-framed women: Weight = 100 pounds + 5 pounds per inch over 5 feet
at [Link].
Copyright © Larson Texts, Inc. All rights reserved.
10.1 Health & Fitness 453

Finding a Body Fat Percentage

The human body is composed of many things including muscles, bones, internal
organs, and fat. You can find your body fat percentage by dividing your body fat
weight by your total body weight. You can use the following formulas to
approximate your body fat percentage. (Use pounds and inches.)

Body Fat Formula for Women

Factor 1: (total body weight × 0.732) + 8.987
Factor 2: wrist circumference (at fullest point) / 3.140
Factor 3: waist circumference (at naval) × 0.157
Weight: 145 lb Factor 4: hip circumference (at fullest point) × 0.249
Wrist: 6.5 in. Factor 5: forearm circumference (at fullest point) × 0.434
Waist: 28 in. Lean body mass = factor 1 + factor 2 − factor 3 − factor 4 + factor 5
Hips: 36 in. Body fat weight = total body weight − lean body mass
Forearm: 10 in. Body fat percentage = (body fat weight × 100) / total body weight

Body Fat Formula for Men

Factor 1: (total body weight × 1.082) + 94.42
Factor 2: waist circumference × 4.15
Lean body mass = factor 1 − factor 2
Body fat weight = total body weight − lean body mass
Body fat percentage = (body fat weight × 100) / total body weight

Find the body fat percentage for the woman

wom shown.

SOLUTION A B C
Using a spreadsheet, you can
n 1 Factor
see that the woman’s body fat 2 Weight 145 115.13
percentage is about 25.4%. 3 Wrist 6.5 2.07
4 Waist 28 4.40
5 Hips 36 8.96
6 Forearm 10 4.34
7
8 Lean body mass 108.18
9 Body fat weight 36.82
10 Body fat percentage 25.4%
11

Checkpoint Help at

A study was conducted to determine the relationship between body fat percentage
(as a percent) and body mass index (BMI), taking age and gender (males = 1,
females = 0) into account. The study consisted of 521 males and 708 females,
with wide ranges in BMI and age. The researchers determined that the formula
for adults is
The formulas on this page only
give estimates for body fat BMI = (0.83 × body fat %) − (0.19 × age) + (9 × gender) + 4.5.
percentage. One way to find an
Find the BMI for the 24-year-old woman in Example 2 and for a 26-year-old
accurate measurement is to find
man who weighs 210 pounds and has a 36-inch waist.
your weight in and out of water.
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454 Chapter 10 The Mathematics of Fitness & Sports

Heart Rate Levels for Heart Rate and Metabolism

a 20-Year-Old
200 Your heart rate is the number of times your heart beats in 1 minute. Your heart
rate is lower when you are at rest and increases when you exercise because your
180 MAXIMUM body needs more oxygen-rich blood when you exercise. Here is the normal heart
160 rate for a person at rest.
HIGH TARGET
140 Ages 1 –10: 70–120 beats per minute
LOW TARGET Ages 11+: 60–100 beats per minute
120
ABOVE NORMAL
100
Finding a Target Heart Rate
80 AT REST
An estimate for your maximum heart rate is
60
BELO
BELOWW NO
NORM
RMAL
AL Maximum heart rate (MHR) = 220 − (your age).
40
Many fitness specialists recommend staying within 60–80% of your maximum
DANGEROUSLY heart rate during exercise. This range is called your target heart rate zone.
20
LOW
Create a table showing the target heart rate zones for different ages.
0
SOLUTION
LUTION
A B C D
Maximum Low Target High Target
1 Age Heart Rate Rate Rate
2 20 200 120 160
3 30 190 114 152
4 40 180 108 144
5 50 170 102 136
6 60 160 96 128
7 70 150 90 120
8 80 140 84 112
9
F instance, when a 30-year-old exercises, his or her heart rate should be
For
bbetween 114 and 152 beats per minute.

Checkpoint Help at

T 24/5 Complete Personal Training Manual suggests that there is a

The
““fat burning zone.” This zone is 60–65% of your maximum heart rate,
aas indicated in the following table.
Fat burning zone

Estimates for a 130-pound

60–65% MHR 80–85% MHR
woman during exercise
Total calories expended
4.86 6.86
per minute
Fat calories expended
2.43 2.70
per minute

W more fat calories being burned at the higher rate, why is the 60– 65% zone
With
called the “fat burning zone”?

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10.1 Health & Fitness 455

Your basal metabolic rate (BMR) is the number of calories you expend per day
while in a state of rest. BMR decreases with age and increases with the gain of
lean body mass.
To determine your BMR accurately, you need a fairly sophisticated test. However,
there are several formulas for approximating your BMR. Here is one that was
developed by Mark Mifflin and Sachiko St. Jeor in 1990.
Formula for Basal Metabolic Rate (BMR) in Calories Per Day
If your incoming calories are
Factor 1: 4.545 × weight (lb)
equal to your outgoing calories,
Factor 2: 15.875 × height (in.)
you should maintain your weight.
Factor 3: 5 × age (yr)
To lose weight, decrease your
Factor 4: 5 for males and −161 for females
incoming calories and/or increase
your outgoing calories. To gain BMR = Factor 1 + Factor 2 − Factor 3 + Factor 4
weight, do the opposite.

Using a Basal Metabolic Rate

To determine your daily calorie needs, you must multiply your basal metabolic
rate by a number determined by your activity level.
rat
Weight: 198 lb
Height: 72 in. Outgoing Calories Incoming Calories
Age: 32 yr Activity level
A BMR multiplier Food Calories per gram
Sedentary
S 1.200 Carbohydrate 4
L
Lightly active 1.375 Protein 4
M
Moderately active 1.550 Fat 9
V
Very active 1.725 Alcohol 7
E
Extra active 1.900

Assume the man shown is very active and his daily calorie intake is about
As
3500 calories. Would you expect him to be losing weight or gaining weight?
350
Explain your reasoning.
Ex

SOLUTION
SO
OL
A B C
1 Factor
2 Weight 198 900 Incoming calories: 3500
3 Height 72 1143 Outgoing calories: −3257
4 Age 32 160 Balance: 243
5 Gender M 5
6
7 BMR 1888
8 Activity level VA 1.725
9 Outgoing calories 3257
10
1
Th
The man should be gaining weight.

✓Checkpoint Help at

Find your daily calorie balance.

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456 Chapter 10 The Mathematics of Fitness & Sports

Cardiovascular Health
On page 454, you saw that the 60–65% target of your maximum heart rate is
called the “fat burning zone.” The 80–85% target is called the “cardio zone.”
Both of these target zones are classified as aerobic exercise because they involve
increased oxygen to the lungs. Anaerobic exercise (without oxygen) includes
activities like weight lifting, which are designed to increase muscle mass.

Cardio zone

60–65% MHR 80–85% MHR

Total calories expended
4.86 6.86
per minute
Fat calories expended
2.43 2.70
per minute

Graphically Representing Health Claims

Graphically represent one of the statements.

Your cardiovascular system • Cardiovascular disease accounts for about 34% of all deaths in America.
consists of your heart and your • Lack of physical activity is a risk factor for cardiovascular disease. About
blood vessels. Cardiovascular 49% of Americans 18 years old and older are not physically active.
fitness refers to the ability of your
heart, lungs, and other organs
• About 46% of male high school students and 28% of female high school
students are physically active.
to transport and use oxygen.
The maximum volume of oxygen • Even low-to-moderate intensity activities, such as walking, when done for
your body can transport and use as little as 30 minutes a day, bring benefits.
is called your aerobic capacity.
When you exercise regularly, you
SOLUTION
can increase your cardiovascular Here is one possibility.
fitness as your heart becomes
more efficient at pumping blood
and oxygen to the body, and as Physically Active High
School Students Physically active
your body becomes more efficient
Not physically active
at using that oxygen.

28%
46%

Females
males Males

Checkpoint Help at

Choose a different claim and represent it graphically.

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10.1 Health & Fitness 457

Cholesterol is a fat-like substance that occurs naturally in all areas of the human
body. Your body needs some cholesterol to help it work properly. About 75% of
the cholesterol in your body is produced by your liver. The rest comes from
foods like meats, eggs, and dairy products. The biggest influence on your blood
cholesterol level is fats in your diet, not the amount of cholesterol in the food
you eat.

HDL Cholesterol LDL Cholesterol Total Cholesterol Triglycerides

Desirable 60à 160á 240á 200á High
Borderline low 40–59 130–159 200–239 150–199 Borderline high
Low 0–39 0–129 0–199 0–149 Desirable
Milligrams per deciliter Milligrams per deciliter

Describing Insulin and Glucose Interaction

Use the graph to describe the interaction between glucose and insulin in a
typical daily diet.

Glucose and Insulin

8.0 400
Glucose blood levels (mmol/L)

Insulin blood levels (pmol/L)

7.5 350
7.0
300
6.5
6.0 250

5.5 200
5.0 150
4.5
100
4.0
3.5 50

3.0 0
7:00 11:00 15:00 19:00 23:00 3:00 7:00
breakfast lunch dinner
Time (hours after midnight)

SOLUTION
Food that you eat is broken down into glucose, the simple sugar that is the main
source of energy for your body’s cells. But, your cells cannot use glucose without
insulin, a hormone secreted by the pancreas. Insulin helps the cells take in glucose
and convert it to energy.
Throughout the day, each time you eat, your pancreas receives a signal to produce
insulin. The graph shows that the amount of insulin a healthy person produces is
proportional to the amount of glucose in the blood.
Testing your cholesterol and
glucose levels is a standard Checkpoint Help at
part of a physical examination
by your doctor. Both of these Use the Internet to describe the relationship between cholesterol, glucose, and
tests require you to fast for cardiovascular health.
several hours before the test.
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458 Chapter 10 The Mathematics of Fitness & Sports

10.1 Exercises
The Robinson Formula In 1983,
Dr. J.D. Robinson published a formula Robinson Formula
for ideal weight. In Exercises 1– 6, 250
use the formula. (See Example 1.)

Ideal weight (pounds)

1. Find the ideal weight of a woman who is 200
5 feet 2 inches tall.
150
2. Find the ideal weight of a man who is
5 feet 3 inches tall. 100

3. Find the ideal weight of a man who is 50 Men: 115 lb à 4 lb per in. over 5 ft
Women: 108 lb à 3.75 lb per in. over 5 ft
6 feet tall.
0
60 62 64 66 68 70 72 74 76 78 80
4. Find the ideal weight of a woman who is
6 feet 4 inches tall. Height (inches)

5. How do you think you should calculate the ideal weight of a person who is shorter
than 5 feet tall? Explain your reasoning. Then find the ideal weight of a woman who
is 4 feet 8 inches tall.

6. Compare the ideal weights for men and women given by the Robinson formula.

Body Fat Percentage In Exercises 7 and 8, find (a) the body fat percentage
and (b) the body mass index for the person shown. (See Example 2.)
7. 8.

Weight: 125 lb
Wrist: 4.5 in.
Weight: 160 lb Waist: 24 in.
Waist: 34 in. Hips: 30 in.
Age: 21 yr Forearm: 7 in.
Age: 18 yr

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10.1 Health & Fitness 459

Heart Rate Zones In Exercises 9–12, use the graph. (See Example 3.)

Heart Rate Zones

170
160
(beats per minute)

150
140
Heart rate

130
Target heart rate zone
120
110
100
Fat burning zone
90
80
0
20 30 40 50 60 70 80

Age (years)

9. Describe any trends in the graph.

10. Is a 25-year-old with a heart rate of 150 beats per minute in the target heart rate zone?

11. Is a 42-year-old with a heart rate of 130 beats per minute in the fat burning zone?

12. Is a 40-year-old with a heart rate of 110 beats per minute in the fat burning zone?

Daily Calorie Balance In Exercises 13 and 14, determine whether you would expect the
person to be losing weight or gaining weight. Explain your reasoning. (See Example 4.)
13. 14.

Weight: 121 lb Weight: 154 lb

Height: 64 in. Height: 68 in.
Age: 24 yr Age: 26 yr
Activity level: Activity level:
moderately active lightly active
Daily calorie intake: Daily calorie intake:
1500 calories 3000 calories

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460 Chapter 10 The Mathematics of Fitness & Sports

Graphical Representation In Exercises 15 –18, graphically represent the statement. (See Example 5.)
15. About 15% of adults 20 years old and older have total cholesterol greater than or equal to
240 milligrams per deciliter.

16. About 13% of males 20 years old and older and 16% of females 20 years old and older have
total cholesterol greater than or equal to 240 milligrams per deciliter.

17. The average total cholesterol of adults 20 years old and older is 198 milligrams per deciliter.

18. The average total cholesterol of males 20 years old and older is 195 milligrams per deciliter, and
the average total cholesterol of females 20 years old and older is 200 milligrams per deciliter.

Cholesterol and Coronary Heart Disease The graph shows the results from a study.
In Exercises 19–22, use the graph. (See Example 6.)

Coronary Heart Disease Mortality for 356,222 Men Aged

35 to 57 Years Over a Six-Year Period
14.00

12.00
Mortality per 1000

10.00

8.00

6.00

4.00

2.00

0
67

64
18

19

20

21

22

23

24

26
a1

q2
8–

2–

3–

3–

3–

1–

2–

5–
16

18

19

20

21

22

23

24

Total cholesterol (mg/dL)

19. Describe any trends in the graph.

20. Compare the information in the graph to the information

about total cholesterol in the chart on page 457.

21. What is the 6-year mortality rate for men with total cholesterols
between 182 and 192 milligrams per deciliter?

22. How many times greater is the risk of dying from coronary heart
disease for a man with total cholesterol greater than or equal to
264 milligrams per deciliter than for a man with total cholesterol
less than or equal to 167 milligrams per deciliter?

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10.1 Health & Fitness 461

Extending Concepts
The Katch-McArdle Formula The Katch-McArdle formula for basal metabolic
rate applies to both men and women. In Exercises 23–30, use the formula.
Basal metabolic rate
= 370 + 9.8 × lean body mass (lb)
(calories per day)

23. Make a graph for the Katch-McArdle formula. Describe any trends in the graph.

24. How much does one additional pound of lean body mass increase a person’s basal
metabolic rate?

25. Find the basal metabolic rate for a person with 100 pounds of lean body mass.

26. Find the basal metabolic rate for a person with 130 pounds of lean body mass.

27. Find the basal metabolic rate for a person who weighs 160 pounds and has a body fat
percentage of 25%.

28. Find the basal metabolic rate for a person who weighs 175 pounds and has a body fat
percentage of 20%.

29. How many calories per day does this 30. How many calories per day does this
person need to take in to maintain person need to take in to maintain
his weight? her weight?

Weight: 180 lb
Waist: 36 in.
Activity level: sedentary Weight: 130 lb
Wrist: 4.5 in.
Waist: 26 in.
Hips: 33 in.
Forearm: 8 in.
Activity level: extra active

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462 Chapter 10 The Mathematics of Fitness & Sports

10.2 The Olympics

Analyze winning times and heights in the Summer Olympics.
Analyze winning times in the Winter Olympics.
Understand Olympic scoring.

The Summer Olympics

The Summer Olympics are held every 4 years. The games feature thousands of
athletes with over 30 sports and about 400 different events.

Analyzing Winning Times

The graph shows the winning times for the men’s 200-meter freestyle swimming
event from 1968 through 2008. Describe the pattern in the graph.

Winning Times for Men’s 200-Meter Freestyle (1968−2008)

116
*Mark Spitz
114
112
110
Seconds

108 *Bruce Furniss

106
S

1
104
1
102
*Michael Phelps
0
1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008
Year
*3 wins by USA (1968−2008)

SOLUTION
SOLU
Excep for 1996, the winning time has decreased each year. The
Except
pattern for the times is roughly linear. At the 2008 Olympics, the use
patter
full-body suits coincided with many new records, which caused
of full
some controversy.

Checkpoint Help at
At the 2008 Olympics
Olympics,
Michael Phelps’s speed
Sketch a graph of the winning times (in seconds) for the women’s 200-meter
in the 200-meter freestyle
freestyle swimming event from 1968 through 2008. Describe any patterns in
swimming event was
graph.
the gra
about 4.3 miles per hour.
A California sea lion, which ((1968, 130.50), (1972, 123.56), (1976, 119.26), (1980, 118.33),
is larger than a human, can ((1984, 119.23), (1988, 117.65), (1992, 117.90), (1996, 118.16),
swim up to 25 miles per hour. (2
(2000, 118.24), (2004, 118.03), (2008, 114.82)

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10.2 The Olympics 463

Analyzing Winning Heights

Pole vaulting has been an event at the Olympic Games since 1896 for men and
since 2000 for women. Early Olympians used solid wood or bamboo poles.
Describe the pattern of the winning heights for men’s pole vaulting from 1896
through 2008. When do you think fiberglass poles were first used?

Winning Heights for Men’s Pole Vaulting (1896−2008)

6.5

6.0

5.5

5.0
Meters

4.5

4.0

3.5

3.0

0
1880 1900 1920 1940 1960 1980 2000 2020
Year

SOLUTION
The winning heights increased until around 1950 when it appeared as though
they would level off at around 4.25 meters. Then in the 1950s, pole-vault
technology improved with fiberglass poles. With that, the heights started
rising again. Now they seem to have leveled off at around 6 meters.
Many years ago,
pole vaulters went over
the bar with their feet
pointing downward.
Today, they do a
complicated gymnastic
maneuver, turning
t i upside id
down as the jump
takes place.

Checkpoint Help at

Today, high school students can pole vault at heights that would have broken
Olympic records in 1950. How is this possible?

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464 Chapter 10 The Mathematics of Fitness & Sports

The Winter Olympics

Like the Summer Olympics, the Winter Olympics are also held every 4 years.
The 2010 Winter Olympics were held in Vancouver, British Columbia.

Analyzing Winning Times

The graph shows the winning times for the men’s 1500-meter speed skating event
from 1924 through 2010. Describe the pattern in the graph.

Times for Men’s 1500-Meter Speed Skating (1924−2010)

Winning Ti
180
170
160
150
Seconds

140
130
120
110
100
0
1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Year

SOLUTION
One thing that stands out in the graph is that the 1932 winning time is an outlier.
The 1500-meter speed skating event at the 1932 Olympics (held at Lake Placid)
was not typical. Instead of racing against the clock individually, skaters raced
against each other in small packs. This accounts for the time that was longer than
the other winning times.
From 1948 through 2010,
the winning time generally
decreased. The biggest change
in technology occurred in the
1998 Olympics when the “clap
skate” was first allowed. It has
allowed speed skaters to reach Regular Skate Clap Skate
speeds that skaters on regular
skates could not reach.

Checkpoint Help at

Sketch a graph of the winning times (in seconds) for the women’s 1500-meter
speed skating event from 1960 through 2010. Describe any patterns in the graph.
(1960, 145.2), (1964, 142.6), (1968, 142.4), (1972, 140.85),
(1976, 136.58), (1980, 130.95), (1984, 123.42), (1988, 120.68),
(1992, 125.87), (1994, 122.19), (1998, 117.58), (2002, 114.02),
(2006, 115.27), (2010, 116.89)

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10.2 The Olympics 465

Analyzing Winning Times

Downhill skiing has been an event at the Winter Olympics since 1948. Before
1964, the skiers’ times were measured to the nearest tenth of a second. Since 1964,
the times have been measured to the nearest one-hundredth of a second. Describe
the pattern of the winning times.

Winning Times for Men’s Downhill Skiing (1948−2010)

180
170
160
150

Seconds
140
130
120
110
100
90
0
1940 1950 1960 1970 1980 1990 2000 2010 2020
Year

For downhill skiing,

remember that the local SOLUTION
skiing and weather conditions From 1948 through 1976, the winning times decreased dramatically. Since 1968,
may affect skiers’ times. the winning times seem to have clustered between 105 seconds and 120 seconds.
The one time since 1968 that it was out of this range was 2002, when the winning
time by Fritz Strobl (Austria) was only 99.13 seconds. To travel about 2 miles in
100 seconds, Strobl had an average speed of about
2 mi 2 mi 60 sec 60 min
— = — × — × — = 72 mph.
100 sec 100 sec 1 min 1 hr

Checkpoint Help at

I 2010, the men’s downhill skiing course had a vertical drop of 2799 feet. The
In
ccourse length was 1.929 miles. The time differences between the medalists were
tthe closest in the history of the event at the Olympics. Graphically represent the
top 15 times (shown in seconds).

114.31, 114.38, 114.40, 114.52, 114.64,

114.67, 114.82, 114.84, 114.87, 114.88,

115.02, 115.19, 115.19, 115.26, 115.29

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466 Chapter 10 The Mathematics of Fitness & Sports

Olympic Scoring
In both the Summer Olympics and the Winter Olympics, the scores for some
events are based on subjective decisions by judges. Some examples are
gymnastics, diving, figure skating, and ski jumping. Example 5 describes the
judging system for diving.

Analyzing Olympic Scoring

For a women’s divin

diving event, a panel of seven judges
evaluate a dive. Each judge awards a score between 0
and 10, as shown in the ttable. The degree of difficulty of the
dive is 1.8. To determine the di
diver’s final score, discard the two
highest and two lowest scores awarded by b the judges. Then add the
degree of difficulty. What is the
remaining scores and multiply by the degre
diver’s score? Is this a good score?

Judge Russia China Mexico Germany Italy Japan Brazil

Score 7.5 8.0 6.5 8.5 7.0 7.5 7.0

SOLUTION
Of the 7 scores, discard 8.5, 8.0, 7.0, and 6.5.

7.5 8.0 6.5 8.5 7.0 7.5 7.0

High Low High Low

Add the remaining scores and multiply by the degreee of difficulty.

1.8(7.5 + 7.5 + 7.0) = 1.8(22) = 39.6

od.
The diver’s score is 39.6. This is not particularly good.

Checkpoint Help at

W
Watch videos of five dives at [Link].
Award a score between 0 and 10 to each dive.
A
((You must award a whole number or a half, as in
6.0 or 8.5. You cannot award a score like 8.3.)
Use the following criteria when awarding a score.

• Rate the approach, the height above the diving board, and the acrobatics.
• Toes pointed = good • Feet touching = good
• No splash = high points • Ripples = lower points
• Diver straight up and down on entry into water = good

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10.2 The Olympics 467

Analyzing Olympic Scoring

Olympic ski jumping scores are based on a point system that combines style points
and distance points.
Style points: For style points, a jump is divided into three parts: flight, landing,
panel of five judges evaluate the jump. Each judge awards a
and outrun. A pane
maximum of 20 popoints. The highest and lowest scores are discarded, and the
scores are totaled.
remaining three sco
Distance
D points: A “K-point” is marked in the landing area.
When
W the K-point is at 120 meters, jumpers are awarded
60
6 points plus 1.8 points for each meter that they exceed the
K-point,
K or 60 points minus 1.8 points for each meter that they
are
a short of the K-point.

I th
In the 2014 Wi
Winter
t OlOlympics,
i
women will be allowed to
compete in ski jumping for
the first time.

Suppose the K-point is at 120 meters. Find the score for a ski jumper with the
following style points and distance.
Style points: 17.0, 18.0, 18.5, 20.0, 19.0 Distance: 125 meters

SOLUTION
Style points: Discard the 20.0 and 17.0. 18.0 + 18.5 + 19.0 = 55.5 points
Distance points: 60 + 1.8(5) = 69 points
Total points: 55.5 + 69 = 124.5 points

Checkpoint Help at

S
Sketch a graph of the winning points for Olympic ski jumping from 1932
tthrough 2010. Describe any patterns in the graph.
(1932, 228.1), (1936, 232.0), (1948, 228.1), (1952, 226.0), (1956, 227.0),
(1960, 227.2), (1964, 230.7), (1968, 231.3), (1972, 219.9), (1976, 234.8),
(1980, 271.0), (1984, 231.2), (1988, 224.0), (1992, 239.5), (1994, 274.5),
(1998, 272.3), (2002, 281.4), (2006, 276.9), (2010, 283.6)

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468 Chapter 10 The Mathematics of Fitness & Sports

10.2 Exercises
Men’s Discus Throw In Exercises 1– 4, use the graph. (See Examples 1 and 2.)

Winning Distances for Men’s Discus Throw (1896−2008)

80

70
Distance (meters)

60

50

40

30

20

10

0
1890 1900 1910 1920 1930 1940 1950 1960 1970
0 1980 1990 2000 2010
Year

1. Describe any patterns in the graph.

2. The concrete throwing circle was introduced to the Olympic discus

hrowing circle on
throw in 1954. Discuss the impact of the concrete throwing
the winning distances.

3. The Olympics were not held in 1940 or 1944 becausese of World War II.
Based on the graph, what do you think the winning distance would have
n your reasoning.
been in 1940 if the Olympics had been held? Explain

stance in the 2012 Olympics?

4. What is a reasonable expectation for the winning distance
Explain your reasoning.

Women’s Discus Throw The winning distances for the women’s discus throw are shown.
In Exercises 5 and 6, use the data. (See Example 1.)

(1928, 39.62), (1932, 40.58), (1936, 47.63), (1948, 41.92), (1952, 51.42),
(1956, 53.69), (1960, 55.10), (1964, 57.27), (1968, 58.28), (1972, 66.62),
(1976, 69.00), (1980, 69.96), (1984, 65.36), (1988, 72.30), (1992, 70.06),
(1996, 69.66), (2000, 68.40), (2004, 67.02), (2008, 64.74)

5. Sketch a graph of the winning distances. Describe any patterns in the graph.

6. Sketch a graph that shows the Olympic record for each of the years in the data set.

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10.2 The Olympics 469

Women’s 1000-Meter Speed Skating In Exercises 7–10, use the graph. (See Examples 3 and 4.)

Winning Times for Women’s

1000-Meter Speed Skating (1960−2010)
96

92
Time (seconds)

88

84

80

76

72

0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Year

7. Describe any patterns in the graph.

8. What is the Olympic record for the women’s 1000-meter speed

skating event?

9. What percent of the winning times were Olympic records?

10. Sketch a graph that shows the Olympic record for each yearr
in the data set.

11. Finishing Times Graphically represent the top 12 times for the 2010 Olympic
women’s 1000-meter speed skating event (shown in seconds). (See Example 4.)

76.56, 76 58
76.58, 76.72, 76.78, 76.80, 76.94,

77.08, 77.28, 77.37, 77.43, 77.46, 77.53

12. Men’s 1000-Meter Speed Skating The winning times (in seconds) for the
men’s 1000-meter speed skating event are shown. Sketch a graph and describe
any patterns. (See Example 3.)

(1976, 79.32), (1980, 75.18), (1984, 75.80), (1988, 73.03), (1992, 74.85),
(1994, 72.43), (1998, 70.64), (2002, 67.18), (2006, 68.90), (2010, 68.94)

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470 Chapter 10 The Mathematics of Fitness & Sports

Diving Scores In Exercises 13–16, find the diver’s score. (See Example 5.)
13. Degree of difficulty: 1.7
Judges’ scores:

Judge Russia China Mexico Germany Italy Japan Brazil

Score 7.0 8.5 8.5 9.0 9.5 9.0 8.5

14. Degree of difficulty: 3.6

Judges’ scores:

Judge Russia China Mexico Germany Italy Japan Brazill

Score 7.0 7.5 7.0 8.5 7.5 8.0 6.5

15. Degree of difficulty: 2.4

Judges’ scores:

Judge Russia China Mexico Germany Italy Japan Brazil

Score 9.0 7.5 8.0 8.5 6.5 7.0 7.5

16. Degree of difficulty: 2.6

Judges’ scores:

Judge Russia China Mexico Germany Italy Japan Brazil

Score 8.0 9.5 9.5 9.0 8.5 9.0 10.0

Ski Jumping Scores In Exercises 17–20, find the score for a ski jumper with the given
style points and distance. Assume the K-point is at 120 meters. (See Example 6.)
17. Style Points: 17.0, 18.5, 17.5, 17.5, 19.0 Distance: 124 meters

18. Style Points: 18.0, 19.0, 20.0, 19.5, 19.5 Distance: 130 meters

19. Style Points: 16.5, 17.0, 18.5, 17.0, 19.0 Distance: 110 meters

20. Style Points: 18.0, 19.5, 19.5, 20.0, 19.5 Distance: 115 meters

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10.2 The Olympics 471

Extending Concepts
Men’s Super Combined In the super combined, skiers compete in two events. The
finishing times for the events are added together to determine the skier with the fastest
combined time. The graphs show the finishing times for both events for the skiers with
the top 6 combined times in 2010. In Exercises 21–23, use the graphs.

Downhill Times for Top Six Slalom Times for Top Six
Overall Finishers Overall Finishers
115.50 52.40
115.06
Time (seconds)

Time (seconds)
115.00 52.00 51.89
114.70
114.50 114.20 51.60 51.43 51.44
114.00 113.88 113.91 51.20 51.01 51.05
113.65
50.76
113.50 50.80
113.00 50.40
0 0
a

er

ic

ty

ty

er

ic

a
nk

nk
ge

ic

ic

ge
el

el
ge

ge
ill

ill
Ra

Ra
st

st
Ja

Ja
rig

rig
Li

Li
Ko

Ko
in

in
rlo

rlo
de

de
rb

rb
d

d
am

am
Te

Te
a

a
Zu

Zu
Bo

Bo
Ca

Ca
ic

ic
nj

nj
Iv

Iv
an

an
Be

Be
lv

lv
Si

Si
Skier Skier

21. Find the combined time for each skier and make a bar graph showing the combined times
from least to greatest. Who won the gold medal? the silver medal? the bronze medal?

22. Determine how many seconds the gold medalist finished ahead of each of the other
skiers in the top six. Then graphically represent the information.

23. Aksel Lund Svindal had the fastest finishing time in the downhill portion at 113.15 seconds,
but he skied off course in the slalom and did not finish that portion. What finishing time in
the slalom would have won him the gold medal? Compare this time to the finishing times in
the slalom graph.

Women’s Super Combined The table shows the finishing

times for the 2 events in the women’s super combined Times for Top Six Overall Finishers
for the skiers with the top 6 combined times in 2010. in Women’s Super Combined, 2010
In Exercises 24–26, use the table. Time (seconds)
24. Find the combined time for each skier and make a bar graph Skier Downhill Slalom
showing the combined times from least to greatest. Who won
the gold medal? the silver medal? the bronze medal? Julia Mancuso 84.96 45.12
Tina Maze 85.97 44.56
25. Determine how many seconds the gold medalist finished ahead
Anja Pärson 85.57 44.62
of each of the other skiers in the top six. Then graphically
represent the information. Maria Riesch 84.49 44.65
Fabienne Suter 85.29 45.56
26. Lindsey Vonn had the fastest finishing time in the downhill
portion at 84.16 seconds, but she missed a gate and fell in the Kathrin Zettel 86.01 44.49
slalom and did not finish that portion. What finishing time in the
slalom would have won her the gold medal? Compare this time
to the slalom finishing times for the top six overall finishers.

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472 Chapter 10 The Mathematics of Fitness and Sports

10.1–10.2 Quiz

Health Calculations In Exercises 1–5, use the information about

the javelin thrower.
Use the Body Fat Formula
1. Find the woman’s body fat percentage.
for women on page 453.

Use the Body Mass Index

2. Find the woman’s body mass index.
Formula on page 453.

Use the Maximum Heart

3. Find the woman’s maximum heart rate.
Rate Formula on page 454.

Use the Basal Metabolic Rate

4. Find the woman’s basal metabolic rate.
Formula on page 455.

5. The woman is extra active and has a daily calorie intake of 2400 calories.
Would you expect the woman to be losing weight or gaining weight?
Explain your reasoning.

Women’s Javelin Throw In Exercises 6–8, use the graph. Weight: 135 lb
Height: 64 in.
Wrist: 5.5 in.
Winning Distances for Women’s Javelin Throw (1932−2008) Waist: 29 in.
80 Hips: 34 in.
75 Forearm: 7.5 in.
Age: 22 yr
70
Distance (meters)

65
60
55
50
45
40
0
1930 1940 1950 1960 1970 1980 1990 2000 2010
Year

6. Describe any patterns in the graph.

7. What percent of the winning distances were Olympic records?

ds?

8. What is the Olympic record for the women’s javelin throw??

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Chapter
p 10 Project
j Math & Projectiles
j 473

Math & Projectiles

PROJECT: Modeling the Path of a Basketball

Basketball was invented by James Naismith in 1891. At the time, he was an

instructor at the YMCA in Springfield, Massachusetts. He called the game
“Basket Ball.” The first official game was played on December 21, 1891.

1. The path that a basketball takes depends on several things. Here are three of them.

• The height from which the basketball is tossed

• The angle at which the basketball is tossed (as measured from the horizontal)
• The initial speed of the basketball
Use the Basketball Simulator at [Link] to find a height, angle, and speed that
successfully make a basket. Set the distance at 25 feet.

Angle: 45 Speed: 5 Height: 9 Distance: 25 Throw

(degrees) (ft/sec) (feet) (feet)

2. You are 25 feet from the basket and release the ball from a height of 9 feet. Is it possible
to make a basket by shooting with an initial speed of 5 feet per second? Use the
simulator to verify your answer.
3. You are 25 feet from the basket and release the ball from a height of only 7 feet.
Is it possible to make a basket by shooting with an initial speed of 5 feet
per second? Use the simulator to verify your answer. Compare your
answer with your answer in Exercise 2.
4. Is it true that “the greater the speed, the smaller thee
nswer.
angle you should throw the ball”? Explain your answer.

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474 Chapter 10 The Mathematics of Fitness & Sports

10.3 Professional Sports

Use mathematics to analyze baseball statistics.
Use mathematics to analyze football statistics.
Use mathematics to analyze statistics in other professional sports.

Baseball Statistics
The statistics of baseball seem to have attracted more interest than the statistics
of any other professional sport. There are dozens of different types of statistics,
batting, pitching, fielding, and baserunning statistics.
including bat

Analyzing Batting Statistics

The batting aaverage of a player or of a team is the ratio of the number of hits to
the number oof “at bats.” The earned run average (ERA) is a measure of a pitcher’s
performance obtained by dividing the total number of earned runs allowed by
number of innings pitched, and then multiplying by nine.
the total num
The scatter pl
plot compares the batting averages and the ERAs of the American
League and th
the National League from 2000 through 2010. What can you conclude?

MLB Stats (2000−2010)

5.25
5.00 American League
4.75 National League
4.50
ERA

4.25
4.00
3.75
3.50
0
0.250 0.255 0.260 0.265 0.270 0.275 0.280
Batting average

SOLUTION
The American League had better (higher) batting averages. The National League
had better (lower) earned run averages.

Checkpoint Help at

It is possible for 1 player to have a higher batting average than another player
2 years in a row, but to have a lower batting average when the 2 years are
combined. Here is an example. How can you explain this?

1995 1996 Combined

Derek Jeter 12/48 .250 183/582 .314 195/630 .310
David Justice 104/411 .253 45/140 .321 149/551 .270

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10.3 Professional Sports 475

Analyzing the Strike Zone

The strike zone is an imaginary box above home plate. The dimensions of the
strike zone vary according to the batter’s height and stance. It is defined as “that
area over home plate the upper limit of which is a horizontal line at the midpoint
between the top of the shoulders and the top of the uniform pants, and the lower
level is a line at the hollow beneath the kneecap.”

In his book The Science of Hitting,

Ted Williams figured that for a man .300 .320 .320 .330 .330 .315 .310
of his height, the official strike zone
would be 7 baseballs wide by .310 .340 .340 .350 .340 .340 .320
11 baseballs high, as shown. The
.310 .340 .340 .350 .340 .340 .320
numbers inside the circles are
Williams’s estimates of his batting
.340 .380 .380 .400 .390 .390 .320
Ted Williams was voted the average on balls pitched in that part
American League Most Valuable of the strike zone. .360 .390 .390 .400 .390 .390 .320
Player twice. He led the league in
batting 6 times and had a career Which part of the strike zone did .360 .390 .390 .400 .380 .380 .310
batting average of .344. Williams consider his weakest?
Explain your reasoning.
Exp .320 .340 .340 .330 .300 .300 .280

.320 .340 .340 .330 .275 .270 .260

SOLUTION
SO
.280 .300 .300 .300 .260 .250 .250

.270 .290 .300 .300 .250 .240 .240

.250 .270 .270 .260 .240 .240 .230

.300 .320 .320 .330 .330 .315 .310

.310 .340 .340 .350 .340 .340 .320

.310 .340 .340 .350 .340 .340 .320

.340 .380 .380 .400 .390 .390 .320

Ted Williams was a left-handed batter.
.360 .390 .390 .400 .390 .390 .320
The lowest batting averages are in the
.360 .390 .390 .400 .380 .380 .310
lower right corner of the diagram. So,
.320 .340 .340 .330 .300 .300 .280
Williams believed that his weakest area
.320 .340 .340 .330 .275 .270 .260
was farthest from his body and down,
as shown.
.280 .300 .300 .300 .260 .250 .250

.270 .290 .300 .300 .250 .240 .240

.250 .270 .270 .260 .240 .240 .230 This might not be true for all batters,
but Williams must have believed
that when he had to extend his arms
Weakest
area
downward, he was not able to obtain
the power he wanted.

Checkpoint Help at

Which part of the strike zone did Williams consider his strongest? Explain.

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476 Chapter 10 The Mathematics of Fitness & Sports

Football Statistics

Calculating Quarterback Ratings

The NFL uses a complicated formula to rate a quarterback’s passing efficiency.
It involves the following four categories.

a. Completion percentage: a = 5 — − 0.3

( completions
attempts )
b. Average yards per attempt: b = 0.25 — − 3
( yards
attempts )
c. Touchdown pass percentage: c = 20 —
( touchdowns
attempts )
d. Interception percentage: d = 2.375 − 25 —
( interceptions
attempts )
If the result of any of these is greater than 2.375, the result is lowered to 2.375.
If the result is negative, it is raised to 0. The quarterback’s passer rating is
a+b+c+d
Passer rating = 100 —— . ( 6 )
On November 25, 2010, Tom Brady completed a game with a perfect passer
Tom Brady is a quarterback rating. He had 21 completions, 27 attempts, 341 yards, 4 touchdowns, and
for the New England Patriots. 0 interceptions. What was Brady’s passer rating in that game?
As of 2011, he played in four
Super Bowls, winning three of SOLUTION
them. In 2005, he was named
Sports Illustrated ’s Sportsman
of the Year.
( completions
a = 5 — − 0.3 = 5 — − 0.3 ≈ 2.39
attempts ) ( 21
27 ) Lowered to 2.375.

( yards
b = 0.25 — − 3 = 0.25 — − 3 ≈ 2.41
attempts ) ( 341
27 ) Lowered to 2.375.

( touchdowns
c = 20 — = 20 — ≈ 2.96
attempts ) ( ) 4
27
Lowered to 2.375.

( interceptions
d = 2.375 − 25 — = 2.375 − 25(0) = 2.375
attempts )
2.375 + 2.375 + 2.375 + 2.375
Passer rating = 100 ——— ≈ 158.3 ( 6 )
So, Brady’s rating was 158.3. This is the highest possible rating in this rating
system. That is why it is called a perfect passer rating.

Checkpoint Help at

Which of the following had perfect passer ratings? Explain.

CMP ATT YDS TD INT
Ben Roethlisberger December 20, 2007 16 20 261 3 0
Kurt Warner September 14, 2008 19 24 361 3 0
Eli Manning October 11, 2009 8 10 173 2 0
Drew Brees November 30, 2009 18 23 371 5 0

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10.3 Professional Sports 477

Describing the Probability of Winning

Statistics from NFL
N games have been analyzed to produce the following graph,
which compares the probability of winning for the team with possession of the
ball, the point difference, and the minutes remaining in the game. The graph
is based on all of the regular season NFL games from 2000 through 2007.

Win Probability by Lead

100

90

80 á7
á

á3
á
ility (percent)
70

á1
60 á0
á
Win probability

50
At any given time in a football ź3
ź1
game, a team’s probability of 40
winning depends on its lead.
When there is not much time left 30
in the game, the team with the ź7
lead is likely to win even if it is 20
only ahead by 7 points or less.
Surprises do, however, occur.
10
For instance, on November 11,
2010, the Atlanta Falcons scored
0
a touchdown and beat the 60 50 40 30 20 10 0
Baltimore Ravens with only Minutes remaining
20 seconds left in the game.

Describe the implications of the graph for a team that is 3 points ahead.

SOLUTION
A team that is 3 points ahead and has possession of the ball is likely to win,
regardless of the number of minutes remaining.
• With 20 to 30 minutes remaining, the team’s chance of winning is about 70%.
• With 10 minutes remaining, the team’s chance of winning increases to about 85%.
• With 5 minutes remaining, the team’s chance of winning is about 90%.

Checkpoint Help at

Suppose you are the coach of a football team. Explain how you could use the
graph above to make decisions about how your team plays. Describe the different
strategies you would use depending on the point difference between your team
and your opponent.

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478 Chapter 10 The Mathematics of Fitness & Sports

Other Professional Sports

Analyzing U.S. Open Wins and Losses

The graph shows the wins and losses by the “top four seeds” (players with the best
rankings prior to the tournament) in the first three rounds of the U.S. Open Tennis
Men’s Singles Tournament. The green line shows straight set wins, the red line
shows wins when they dropped one or two sets, and the blue line shows losses.
In men’s tennis, a player must win 3 out of 5 sets. A “straight set win”
means that the player won the first 3 sets. (In women’s tennis, a player
must win 2 out of 3 sets. A “straight set win” means that the player won
the first 2 sets.)
In men’s tennis, a player can drop 1 or 2 sets and still win the match.
This can happen in 9 different orders: L-W-W-W, W-L-W-W, W-W-L-W,
L-L-W-W-W, L-W-L-W-W, L-W-W-L-W, W-L-L-W-W, W-L-W-L-W, and
W-W-L-L-W. (In women’s tennis, a player can drop 1 set and still win the
match. This can happen in only 2 orders: L-W-W and W-L-W.)

Wins and Losses by the Top Four Seeds in the First

Three Rounds of the U.S. Open Men’s Singles
100
90
80
70
Percent

60
50
40
30
20
10
0
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Year

Wh t observations
What b ti k from
can you make f thi graph?
this h?

SOLUTION
Seeding is a system of ranking
The most obvious observation is that the “seeding system” really works! The
players in a tournament draw to
players who entered the U.S. Open as 1 of the top 4 ranked players were matched
avoid the highest-ranked players
against players with lower rankings, and the top 4 seeds appeared to win easily.
playing against each other in the
Another observation is that the green line always exceeded the red line, except in
early stages of the event.
1972, 1974, and 2002.

Checkpoint Help at

a. Do the 3 lines in the graph always total 100%? Explain.

b. In the years in which there were no losses, are the green and red lines mirror
images of each other? Explain.

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10.3 Professional Sports 479

Analyzing Splits and Strikes

The graphs sh
show that the greater a bowler’s skill, the tighter the range of locations
bowling ball hits the pins.
where the bow

Frequency
ncy
requen
reque
req
Fre cy
cy

Skill:
Skil
Sk ill:
il LLo
Low
ow Medium High

Professiona bowlers almost always get 8, 9, or 10 pins down on their first

Professional
b
ball. The box-and-whisker plots compare the number of splits a bowler gets
he first-ball average. What does this graph show?
to his or her

1st Ball Average Versus Number of Splits

8

6
Splits per series

0
6.5 to 7 7 to 7.5 7.5 to 8 8 to 8.5 8.5 to 9
1st ball average

SOLUTION
TION
As of 2010, Pete Weber won
35 Professional Bowlers Overall, the box-and-whisker plots show that the median number of splits a bowler
Association (PBA) Tour events, gets in a series (3 games) increases as his or her first-ball average increases. This
including 8 major titles. His 35th makes sense because you cannot have a high pin average on the first ball unless
tour win on April 4, 2010, secured you are hitting the head pin almost every time. The bad news is that when you hit
him the position of 3rd place on the head pin, you have an increased likelihood of ending up with a split—a result
the all-time PBA Tour titles list. in which the standing pins are “split” with a space between them.

Checkpoint Help at

7 8 9 10 Bowling pins are numbered from 1 through 10.

The “7-10 split” is considered to be the worst.
4 5 6
List three other possible splits. Include a diagram
2 3 with your answer.
1

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480 Chapter 10 The Mathematics of Fitness & Sports

10.3 Exercises
H
Hitting Statistics The 2010 hitting statistics of 10 Major League Baseball players are shown.
IIn Exercises 1–6, use a spreadsheet. (See Examples 1 and 2.)

PLAYER TEAM POS G AB R H 2B 3B HR RBI TB BB SO SB CS SF HBP

M Cabrera DET 1B 150 548 111 180 45 1 38 126 341 89 95 3 3 8 3

S Choo CLE OF 144 550 81 165 31 2 22 90 266 83 118 22 7 2 11

P Fielder MIL 1B 161 578 94 151 25 0 32 83 272 114 138 1 0 1 21

J Hamilton TEX OF 133 518 95 186 40 3 32 100 328 43 95 8 1 4 5

J Mauer MIN C 137 510 88 167 43 1 9 75 239 65 53 1 4 6 3

J Morneau MIN 1B 81 296 53 102 25 1 18 56 183 50 62 0 0 2 0

A Pujols STL 1B 159 587 115 183 39 1 42 118 350 103 76 14 4 6 4

J Thome MIN DH 108 276 48 78 16 2 25 59 173 60 82 0 0 2 2

J Votto CIN 1B 150 547 106 177 36 2 37 113 328 91 125 16 5 3 7

K Youkilis BOS 1B 102 362 77 111 26 5 19 62 204 58 67 4 1 5 10

1. Which player had the greatest batting average (AVG) in 2010?

Abbreviations
2. Slugging percentage (SLG) is a statistic used to measure the power 2B Doubles
of a hitter. The formula to calculate slugging percentage is shown. 3B Triples
Find the slugging percentage for each player. AB At Bats
AVG Batting Average
TB BB Bases on Balls (Walks)
SLG = —
AB CS Caught Stealing
G Games Played
3. On-base percentage (OBP) is a statistic used to measure how H Hits
often a player reaches base. The formula to calculate HBP Hit by Pitch
on-base percentage is shown. Find the on-base HR Home Runs
percentage for each player. OBP On-base Percentage
R Runs Scored
H + BB + HBP
OBP = —— RBI Runs Batted In
AB + BB + HBP + SF
SB% Stolen Base Percentage
4. Considering AVG, SLG, and OBP, SB Stolen Bases
he
which player would you choose as the SF Sacrifice Flies
in
most valuable player (MVP)? Explain SLG Slugging Percentage
your reasoning. SO Strikeouts
TB Total Bases
TPA Total Plate Appearances
5. Is it possible for a player to have an OBP
our reasoni
that is less than his AVG? Explain your ing.
reasoning.

6. Albert Pujols had a stolen base percentage (SB%) of 77.8%. Write a formula using
abbreviations to calculate SB%.

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10.3 Professional Sports 481

3rd Down The graphs show 3rd down statistics for all of the regular season NFL games
from 2000 through 2007. Plays within 2 minutes of the end of a half and all plays within
field goal range are excluded. In Exercises 7–14, use the graphs. (See Examples 3 and 4.)
7. Do NFL coaches call more pass plays
or run plays on 3rd down? Explain 3rd Down Play Balance
your reasoning. 100

80
8. Describe the pattern in the “3rd Down
Success” graph. 60

Percent
40
9. For what “to go” distances are the
conversion rates for running and for
20
passing about equal on 3rd down? Pass
Run
0
1 2 3 4 5 6 7 8 9 10
10. With 2 yards to go on 3rd down,
wn, To go (yards)
should the defense expect a pass
ass play
or a run play? Explain your reasoning.
easoning.

11. With 2 yards to go on 3rd down,

wn,
should the coach call a pass play or a
run play? Explain your reasoning.
ning.

12. How might a quarterback’s passing

assing
efficiency influence a coach’s play
selection on 3rd down and 4 yards
to go?
3rd Down Success
80

13. The optimum mix for running g and

passing occurs when the conversion
Conversion rate (%)

60
rates are about equal. When this
happens, the overall conversion rate
will be greatest. Is the pass/run ratio 40
at an optimum mix on 3rd down and
1 yard to go? Explain your reasoning.
20

Pass
14. Suppose you are the coach of an Run
NFL team. Your team is facing a 0
1 2 3 4 5 6 7 8 9 10
3rd down with 5 yards to go. Would
To go (yards)
you call a pass play or a run play?
Explain your reasoning.

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482 Chapter 10 The Mathematics of Fitness & Sports

NBA Shot Chart The Dallas Mavericks hosted the Oklahoma City Thunder in game 1 of the
Western Conference finals on May 17, 2011. The shot chart shows the final field goal data for
Kevin Durant and Dirk Nowitzki, the top scorers on each team. In Exercises 15–21, use the
shot chart. (See Examples 5 and 6.)

MADE
MISSED

Durant (Oklahoma City) Nowitzki (Dallas)

15. Which player attempted more field goals? Explain your reasoning.

16. Field goal percentage is the number of field goals made divided by the
number of field goals attempted. Which player had a greater field goal
percentage?

17. Nowitzki had one of the most efficient playoff games in NBA history.
Not only did he shoot a high percentage from the floor, he also made
24 out of 24 free throws (an NBA playoff record). How many points
did Nowitzki score?

18. The Thunder’s final score was 112. Nowitzki accounted for 39.7% of the
Mavericks’ final score. Which team won the game? Explain your reasoning.
ng.

19. What was Durant’s 3-point field goal percentage?

20. Durant accounted for 35.7% of the Thunder’s 112 points. How many free
throws did he make during the game?

21. What observations can you make about the variability of shot selection forr
each player?

22. Long Range Would you rather shoot 40% from 3-point range or 50%
from inside the 3-point line? Explain your reasoning.

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10.3 Professional Sports 483

Extending Concepts
Voting Habits of Sports Fans The bubble graph shows the results of a study about the
voting habits of sports fans in the United States. In Exercises 23–28, use the graph.

Voting Habits of Sports Fans in the United States

PGA Tour (men’s golf) 140
LPGA Tour (women’s golf)

High school sports

HIGH TURNOUT
130
Minor League Baseball College basketball
College football
Olympics
Men's tennis (ATP) MLB 120
NHL
Women's tennis (WTA)
NFL
WNBA 110

Voter Turnout Index

NASCAR
Pro Bull Riding
NBA
100
Grand-Am Sports Car racing NHRA Drag Racing

90

Major League Soccer (MLS)

LOW TURNOUT
80
Monster trucks Supercross/Motocross

Extreme/action sports
70
WWE (pro wrestling)

60
-100 -80 -60 -40 -20 0 20 40 60 80

DEMOCRAT SKEW Republican Index Minus Democrat Index REPUBLICAN SKEW

23. What do the size and color of a bubble represent in the graph?

24. Fans of which sport are most likely to vote? least likely to vote?

25. Are sports fans more likely to vote Republican or Democrat?

Explain your reasoning.

26. How would you rate the voter turnout of sports fans?

27. Television ad buyers tend to focus on sporting events because

sports fans usually watch sporting events live rather than on a
DVR machine. This means viewers are unable to skip the ads.
Which sporting events should ad buyers target to reach
Republican voters? Democratic voters?

28. You are in charge of promoting a Democratic campaign. Would

you rather advertise during an NBA game or a women’s tennis
(WTA) match? Explain your reasoning.

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484 Chapter 10 The Mathematics of Fitness & Sports

10.4 Outdoor Sports

Use mathematics to analyze hiking and mountain climbing.
Use mathematics to analyze kayaking and sailing.
Use mathematics to analyze bicycling and cross-country skiing.
Negative Grade
Hiking and Mountain Climbing
Rise

Hiking is an outdoor sport, often done on trails created by the National Forest
Service or by a state agency. There are thousands of trails in the United States,
such as Glacier Gorge Trail in Estes Park, Colorado, and the Appalachian Trail
Run in the Eastern United States.

Positive Grade Comparing Grade and Speed

The scatter plot shown was created by a hiker in California. The hiker used a
Rise

GPS to compare the grade of the trail with his speed. Describe the scatter plot.
What does the green line represent?
Run

Rise Hiking Speed Versus Trail Grade

Grade â 9
Run
Will Rogers Trail Run
8 Iron Mt Hike
Isoenergy Line
Speed (miles per hour)

0
Ź0.6 Ź0.4 Ź0.2 0 0.2 0.4 0.6
Grade

[Link]
SOLUTION
SOLU
As a ggeneral observation, you can see that the hiker was traveling faster on level
ground. As the grade changed to uphill or downhill, the hiker’s speed decreased.
ground
In the Internet post about this experiment, the hiker called the green line his
“isoenergy line” because he figured he was exerting the same amount of energy at
“i
The American Hiking Society works
every point on the line. For instance, walking at 2 miles per hour at a grade of 0.4
“toward ensuring that hiking trails
uses the same energy as running at 5 miles per hour at a grade of 0.1.
and natural places are cherished
and preserved” for all generations.
Checkpoint Help at

The suggestion for a casual hiking pace on a trail is 1 hour to walk 1.8 miles
with a change in elevation of 0.2 mile. The suggestion for a fast hiking pace is
30 minutes. How do these speeds compare to the scatter plot shown in Example 1?
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10.4 Outdoor Sports 485

Analyzing UV Radiation
Sunlight consists of visible and invisible light. Ultraviolet (UV) light is
invisible and is classified according to its wavelength, measured in nanometers
(one-billionth of a meter). UV radiation is dangerous. It causes premature aging
of the skin and can also cause various forms of skin cancer.

Electromagnetic Spectrum
Ultraviolet Visible light Infrared

UVC UVB UVA

100 280 315 400 780

Wavelength (nanometers)

UV radiation increases with elevation. It increases about 5% for every 1000 feet.
Compare the UV radiation at the following elevations.

• Seattle, Washington (0 feet)

• Denver, Colorado (5000 feet)

• Mount McKinley, Alaska (20,000 feet)

SOLUTION
• For the sake of comparison, assume that the amount of UV radiation
in Seattle is 1.

• Because Denver has an elevation of 5000 feet, the amount of UV radiation

in Denver is
(1.05)5 ≈ 1.276 5000 feet elevation
or about 28% more than the UV radiation in Seattle.

• The peak of Mount McKinley has an elevation of 20,000 feet. The amount
of UV radiation near the peak is
(1.05)20 ≈ 2.653 20,000 feet elevation
or about 165% more than the UV radiation in Seattle.
Mountain climbers need special
protection for their skin and eyes. Checkpoint Help at
They should wear goggles and
sunscreen that block both UVA Compare the UV radiation at the following elevations.
and UVB rays.
• Reno, Nevada (4000 feet)

• Mount Whitney, California (14,000 feet)

• Mount Everest, Nepal (29,000 feet)

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486 Chapter 10 The Mathematics of Fitness & Sports

Kayaking and Sailing

A kayak is a boat in which a paddler faces forward, legs in front, using a
double-bladed paddle. A canoe, on the other hand, is a boat in which a paddler
faces forward and sits or kneels in the boat, using a single-bladed paddle.

Analyzing a Graph
The graph shows the discharge (amount of water) flowing through Rock Creek
in Oregon. You want to kayak in Rock Creek only when the discharge is
50 cubic feet per second or greater. Estimate the percent of days from
January 26 through May 26 that the creek meets your criteria.

Rock Creek near Mill City, OR

400

350

300
Discharge (ft3/sec)

250

200

150

100

50

0
1-26-2009
2-01-2009
2-07-2009
2-13-2009
2-19-2009
2-25-2009
3-03-2009
3-09-2009
3-15-2009
3-21-2009
3-27-2009
4-02-2009
4-08-2009
4-14-2009
4-20-2009
4-26-2009
5-02-2009
5-08-2009
5-14-2009
5-20-2009
5-26-2009
Date
From a blog by a kayaker: “The
East Fork of Rock Creek (aka The
Rock Creek or simply ‘The Rock’) SOLUTION
is a full-on, bare-knuckled brawler
and one of my personal favorites. There are only 2 time periods when the creek has a discharge that is comfortably
This creek has an outlandish above 50 cubic feet per second. The first is about 11 days from February 23
gradient created by a non-stop through March 5. The second is about 23 days between March 14 and April 8.
series of ledges, falls, and boulder So, the percent of the days from January 26 through May 26 (121 days) that the
gardens that thunder down creek water is high enough is
through Rock Creek Canyon.” days above 50 ft3 /sec 34
—— = — ≈ 0.281.
total days 121

The creek meets your criteria about 28% of the time.

Checkpoint Help at

You want to kayak in Rock Creek only when the discharge is 150 cubic feet per
second or greater. Estimate the percent of days from January 26 through May 26
that the creek meets your criteria.

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10.4 Outdoor Sports 487

Analyzing Sail Designs

The sail design of a modern yacht is quite different from the sail design used
during most of the past 5000 years. Why is that?

Ancient Egyptian Design Viking Design Classic Chinese Design Modern Yacht

SOLUTION
The sail design of a modern yacht is different from the sail design used during
most of the past 5000 years because of advancements in sail design. The following
is a summary of some of the advancements.

To sail against the wind, a boat can sail at an angle to the wind and zigzag.
This is called “tacking.” Early sailboats with square sails were not very
Th
effective when sailing against the wind. They were most effective when
ef
sailing with the wind. The development of triangular sails enabled boats to
sa
sail against the wind more effectively. This was because the boats were able
sa
to tack at a smaller angle with the wind than with square sails.
W
When a triangular sail is positioned correctly, the air flow creates a pressure
differential. This differential generates a force called the lift, which pulls a
di
ship forward. A modern yacht like the one shown above has two sails—the
sh
mainsail and the jib. This design increases the pressure differential and
m
generates more lift.
ge

Checkpoint Help at

In an answer to the question, “Why

Buoyancy
doesn’t a sailboat tip over?,” the
Center
of gravity following explanation is given. “It’s
a balancing act between the boat’s
center of gravity and its center of
Center of
buoyancy
buoyancy.” Explain what this means.
Weight

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488 Chapter 10 The Mathematics of Fitness & Sports

Bicycling and Cross-Country Skiing

Bicycling is one of the most popular outdoor sports in the United States. People
not only ride bicycles for exercise and for pleasure, but many commute to work
by bicycle.

Describing a Bicycle Trip

The following graph was created by a cyclist using two devices: one that measured
his heart rate and another that measured the elevation. Describe his cycling trip.

Bicycle Trip
190
Elevation (feet) (beats per minute)

180
170
Heart rate

160
150
140
130
120
110

50
40
30
20
Elev

10
0
[Link] [Link] [Link] [Link] [Link] [Link] [Link] [Link] [Link] [Link]
[Link]
Time

SOLUTION
SO
• The trip lasted from 17:35 (5:35 p.m.) to 19:05 (7:05 p.m.), which is 90 minutes.
• The trip did not start and stop at the same elevation, so the person did not make
a round trip—beginning and ending at the same location.
• The elevation is low, at times only 5 feet above sea level. So, the person must
have been riding near the ocean. On the other hand, there was 1 point on the trip
where the elevation was 50 feet above sea level.
• The person’s heart rate was elevated during most of the trip. In fact, during
much of the trip, his heart rate was above 160 beats per minute, which is the
maximum target heart rate for cardio exercise for a 20-year-old (see page 454).

Checkpoint Help at

In a survey, bicyclists in the United States were asked why they ride bicycles.
Graphically represent the results.
Gr
Recreation 26.0% Visit friend/relative 10.1%
Exercise 23.6% Go on a bicycle ride 2.3%
Commute to school/work 19.2% Other 4.9%
Personal errand 13.9%

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10.4 Outdoor Sports 489

Analyzing Energy Use in Outdoor Sports

Cross-country (XC) skiing is one of the most demanding outdoor sports. The
compares the number of calories burned per minute for eight activities.
graph compare

Calories Burned During Physical Activities

30

Calories burned per minute

Mal
Male
25
Female
Fem
20

15

10

0
Walking
g Tennis Weight Basketball Racquetball Running Swimming XC skiing
lifting

Activity

Wh
Why ddoes cross-country skiing consume so much energy?

SOLUTION
• Cross-country skiing is 95–100% dependent on aerobic energy output.
• Cross-country skiing consists of repeated contractions of arm and leg muscles.
Motion Weight Friction
• Of the total muscle mass of a human body, cycling uses 40%, running uses
of skier resistance 60%, and cross-country skiing uses 80%.
• In spite of the fact that skis glide on snow, friction is still present.
• Cross-country skiing is a cold weather sport. Your body uses energy trying to
keep you warm.

Checkpoint Help at

The graph shows

the oxygen uptake Oxygen Uptake
for U.S. and Swedish 10
cross-country skiers.
Liters per minute

8
Why do you think the
uptake is greater for 6
Swedish athletes?
4

0
U.S. Swedish U.S. Swedish
Men Men Women Women

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490 Chapter 10 The Mathematics of Fitness & Sports

10.4 Exercises
Camping The graph shows the demographics of campers in the United States.
In Exercises 1–6, use the graph. (See Examples 1 and 2.)

Demographics of Campers in the United States

Gender Age Income Education Ethnicity
100% 3.7% Other
10.1% Post-
Graduate 4.5%
24.9% $100,000+
29.2%
Female 45+ Hispanic
80% College
43.8% 21.5%
Graduate

$75,000 to
15.5% $99,999
60%
24.9% 1 to 3 Years
34.5% 25-44 College
Caucasian/
$50,000 to 86.3%
24.7% White
$74,999
40%
High School
15.6% Asian/ Pacific
Graduate
10.6% 18-24 Islander
56.2% Male 1 to 3 Years
$25,000 to
20% 23.2% High School
10.8% $49,999
13-17
African
27.4%
Not Specified American/
14.9% 6-12 Less than .5% Black
11.8%
$25,000 3.2% 2.4%
0%

1. Is a camper more likely to be younger than 18 years old or older than 44 years old?
Explain your reasoning.

2. What is the probability that a random camper is a male between the ages of 25 and 44?

3. The median household income in the United States is about

$50,000. On average, do campers earn more or less than the
median household income? Explain your reasoning.

4. The graph is based on a survey of 41,500 campers. How

many of the campers in the survey are African American?

5. Can you use the graph to determine the likelihood that

any random person participates in camping? Explain
your reasoning.

6. Explain how the education bar is different from

the other four bars in the graph.

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10.4 Outdoor Sports 491

Fishing In Exercises 7–13, use the diagram and the information below. (See Examples 3 and 4.)
The 28-foot-long fishing boat has twin turbo diesel engines and a 220-gallon fuel tank.
The average cruising speed of the boat to its anchoring point is 20 knots. The horizontal
distance between the fishing boat and its anchor is 138 feet. (Note: 1 knot = 1.15 mph)

140 ft
d

138 ft

7. What is the average speed in miles per hour of the boat to its anchoring point?

8. The fishing boat takes 48 minutes to cruise straight to its anchoring point from
the dock. How far from the dock is the anchoring point?

9. A general rule of thumb is to let out 7 to 10 feet of anchor line

for every foot of water depth. The fishing boat in the diagram
used this rule when it anchored. What is the range of the
depth d of the water?

10. The anchor line ends with a section of chain. This chain provides
extra weight and prevents jagged bottom rocks from cutting the
anchor line. The recommended length of an anchor chain is
one-half foot for every foot of boat length. What is the
recommended length for the boat shown?

11. What is the maximum water surface area that the fishing boat
can cover when the anchor is stationary?

12. Diesel fuel weighs about 7.1 pounds per gallon. How much does
three-fourths of a tank of fuel weigh?

13. Diesel engines use about 1 gallon of fuel per hour for
every 18 horsepower used. How many hours can the
boat run at 342 horsepower on a half tank of fuel?

14. Fuel Reserves A general rule of thumb when fishing

is to use one-third of the fuel in your tank to get there,
use one-third to get back, and save the last third as an
emergency backup. The fuel gauge shows the amount
of fuel in a fishing boat after reaching its anchor point.
Will the boat have enough fuel reserves according to
the rule of thumb? Explain your reasoning.

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492 Chapter 10 The Mathematics of Fitness & Sports

Mountain Biking The graph shows the data for eight mountain bike trails.
In Exercises 15–20, use the graph. (See Examples 5 and 6.)

Mountain Biking
6000

Trail 1 10% grade reference

Trail 2
Trail 3
5000 Trail 4
Trail 5
Trail 6
Trail 7
4000 Trail 8
Vertical rise (feet)

3000

2000

1000

0
0 2 4 6 8 10 12 14 16
Terrain distance
ce (miles)

15. Do any of the trails have downhill sections?

Explain your reasoning.

16. What percent of the trails are longer than 6 miles?

17. Which trail requires the most energy to complete?

Explain your reasoning.

18. What is the purpose of the 10% grade reference line?

19. Estimate the mean and median vertical rise of the trails.
ls.
Are any of the trails outliers? Explain your reasoning.

20. Which trail would you prefer to ride? Explain your reasoning.
asoning.

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10.4 Outdoor Sports 493

Extending Concepts
Heat Index In Exercises 21–26, use the heat index chart and the information below.
The heat index is the temperature the body feels when heat and humidity are combined.
The chart shows the heat index that corresponds to the actual air temperature and
relative humidity. This chart is based upon shady, light wind conditions. Exposure to
direct sunlight can increase the heat index by up to 15°F. The National Weather Service
will issue an excessive heat warning when the heat index is expected to exceed 105°F
in the next 36 hours. From 2000 to 2009, heat killed more people in the United States
than any other weather-related incident.

Heat Index
With Prolonged Exposure
Temperature (íF) and/or Physical Activity
80 82 84 86 88 90 92 94 96 98 100 102 104 106 108 110 Extreme Danger
40 80 81 83 85 88 91 94 97 101 105 109 114 119 124 130 136 Heat stroke or sunstroke
Relative humidity (%)

45 80 82 84 87 89 93 96 100 104 109 114 119 124 130 137 highly likely
50 81 83 85 88 91 95 99 103 108 113 118 124 131 137
Danger
55 81 84 86 89 93 97 101 106 112 117 124 130 137
60 82 84 88 91 95 100 105 110 116 123 129 137 Sunstroke, muscle cramps,
65 82 85 89 93 98 103 108 114 121 126 130 and/or heat exhaustion likely
70 83 86 90 95 100 105 112 119 126 134 Extreme Caution
75 84 88 92 97 103 109 116 124 132
Sunstroke, muscle cramps,
80 84 89 94 100 106 113 121 129
and/or heat exhaustion possible
85 85 90 96 102 110 117 126 135
90 86 91 98 105 113 122 131 Caution
95 86 93 100 108 117 127
Fatigue possible
100 87 95 103 112 121 132

21. On average, lightning kills 48 people per year. Heat kills 237.5% more
people each year than lightning. What is the annual fatality rate of heat?

22. On average, tornadoes kill 100 fewer people per year than heat.
What is the annual fatality rate of tornadoes?

23. Suppose tomorrow’s high temperature is predicted to

be 92°F with a relative humidity of 80%. Should the
National Weather Service issue an excessive heat
warning? Explain your reasoning.

24. Suppose you are climbing the west side of a mountain

on a sunny afternoon. The temperature is 88°F with a
relative humidity of 60%. Should you be concerned
about the heat index? Explain your reasoning.

25. Holding the relative humidity constant, does the heat

index have a linear relationship with the temperature?
Explain your reasoning.

26. How might the heat index affect the planning of a

hiking trip?

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494 Chapter 10 The Mathematics of Fitness & Sports

10.3–10.4 Quiz
Competitive Balance The chart shows the average absolute change in win percentage
for all the teams in a league for each season shown. For instance, the value for the
NBA in 2007 is based on the average absolute change in win percentages between the
2006–2007 season and the 2007–2008 season. In Exercises 1– 4, use the chart.

Regular Season Competitive Balance

Major American Sports Leagues (2001−2009)
0.25

0.20
Consecutive season
change in win %

0.15

0.10

0.05

0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009
Two-year period ending at season start
MLB NFL NBA NHL

1. Identify and estimate any missing data points. Wind Speed (mph)
0 10 20 30 40
2. Which major sports league has the most competitive balance?
Explain your reasoning. Little danger
30íF (caution)
3. In the 2009–2010 season, an NBA team won 50 out of 82 games. Freezes exposed
20íF flesh within
How many games would you expect the team to win in the 1 hour
2010 –2011 season? 10íF

4. Do you agree with the following comment? Use the chart to 0íF Danger
explain your reasoning. Freezes exposed
Ź10íF flesh within
COMMENT: 1 minute

Bad baseball teams remain bad more Ź20íF

often than bad football teams.
Ź30íF Extreme danger
Freezes exposed
flesh within
Ź40íF
30 seconds
Frostbite In Exercises 5–8, use the chart to identify the frostbite
Ź50íF
risk for each activity.
5. Camping in −15°F weather with a 20 mph wind

6. Hiking in 0°F weather with a 5 mph wind

7. Skiing in −30°F weather with a 25 mph wind

8. Climbing in −25°F weather with a 10 mph wind

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Chapter 10 Summary 495

Chapter 10 Summary

Section Objectives How does it apply to you?

You can identify a healthy weight for a given height and
Compare a person’s weight,
calculate a person’s body fat percentage given his or her
height, and body fat percentage.
Section 1

measurements. (See Examples 1 and 2.)

Interpret and use a person’s heart Use your target heart rate to maximize exercise and your
rate and metabolism. BMR to manage your weight. (See Examples 3 and 4.)

Understand the indicators of a healthy cardiovascular system,

Determine factors for
such as exercise, cholesterol, triglycerides, insulin, and
cardiovascular health.
glucose. (See Examples 5 and 6.)

Olympic records are consistently broken over time as

Analyze winning times and
athletes refine techniques and technology improves.
heights in the Summer Olympics.
Section 2

(See Examples 1 and 2.)

Olympic records are consistently broken over time as

Analyze winning times in the
athletes refine techniques and technology improves.
Winter Olympics.
(See Examples 3 and 4.)

Understand that the scores for some events are based on

Understand Olympic scoring.
subjective decisions by judges. (See Examples 5 and 6.)

Use mathematics to analyze You can determine which teams and players are better in
baseball statistics. various categories. (See Examples 1 and 2.)
Section 3

You can determine a quarterback’s passer rating and

Use mathematics to analyze
the probability of winning depending on the score and the
football statistics.
time remaining in the game. (See Examples 3 and 4.)
Use mathematics to analyze You can determine how likely it is for a top-seeded tennis
statistics in other professional player to win a tennis match, or how likely it is for a bowler
sports. to throw a split. (See Examples 5 and 6.)

You can exert the same amount of energy walking on a

Use mathematics to analyze hiking steep grade as you can running on a lesser grade. As
and mountain climbing. elevation increases, so does UV radiation exposure.
Section 4

(See Examples 1 and 2.)

You should only kayak or canoe when the water level is high
Use mathematics to analyze
enough. Sail designs have evolved over the years to allow
kayaking and sailing.
ships to travel in any direction. (See Examples 3 and 4.)
Bicycling can be rigorous exercise that elevates your heart
Use mathematics to analyze
rate. Cross-country skiing uses more energy than most other
bicycling and cross-country skiing.
outdoor sports. (See Examples 5 and 6.)

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496 Chapter 10 The Mathematics of Fitness & Sports

Chapter 10 Review Exercises

Section 10.1
Body Fat Percentage In Exercises 1 and 2, find (a) the body fat percentage and
(b) the body mass index for the person shown.
1. 2.
Weight: 115 lb
Wrist: 4 in.
Waist: 25 in.
Hips: 31 in.
Forearm: 6.6 in.
Age: 23 yr

Weight: 145 lb
Waist: 30 in.
Age: 22 yr

Daily Calorie Balance In Exercises 3 and 4, determine whether you would expect
the person to be losing weight or gaining weight. Explain your reasoning.
3. The man in Exercise 1 is 68 inches tall,
very active, and has a daily calorie intake
of 3200 calories. Heart Rate Zones
Heart rate (beats per minute)

170
160
4. The woman in Exercise 2 is 64 inches tall, 150
moderately active, and has a daily calorie Cardio zone
140
intake of 1600 calories. 130
120
Target heart rate zone
110
Heart Rate Zones In Exercises 5 and 6,
100
use the graph.
90
5. Is a 25-year-old with a heart rate of 80
160 beats per minute in the cardio zone? 0
20 30 40 50 60 70 80
Age (years)
6. Is a 50-year-old with a heart rate of
100 beats per minute in the cardio zone?

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Chapter 10 Review Exercises 497

Section 10.2
Men’s Hammer Throw In Exercises 7–11, use the graph.
7. Describe any patterns in
the graph. Winning Distances for Men’s Hammer Throw (1900−2008)
90
8. What percent of the winning 85
distances were Olympic 80

Distance (meters)
records? 75
70
9. What is the Olympic record 65
for the men’s hammer throw? 60
55

10. What do you think the winning 50

distance would have been in 45
1940 if the Olympics had been 0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
held? Explain your reasoning.
Year

11. Sketch a graph that

shows the Olympic
record for each year
in the data set.

12. Distances Graphically represent the top 8 distances (shown in meters) for
the final round of the 2008 Olympic men’s hammer throw.

82.02, 81.61, 81.51, 80.96,

80.71, 79.59, 79.22, 78.65

13. Diving Score A diver performs a dive with a degree of difficulty of

2.2. The judges’ scores are shown. Find the diver’s score.

Judge Russia China Mexico Germany Italy Japan Brazil

Score 7.5 8.0 8.5 8.5 7.0 8.0 9.0

14. Ski Jumping Score Find the score for a ski jumper with the following style points and distance.
Assume the K-point is at 120 meters.
Style Points: 16.0, 16.5, 19.0, 17.5, 18.0 Distance: 128 meters

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498 Chapter 10 The Mathematics of Fitness & Sports

Section 10.3
MLB Win Percentage The scatter plot compares the win percentage on June 1 (about 50 games)
to the final win percentage on October 3 (162 games) of every Major League Baseball team for
the 2010 season. In Exercises 15–20, use the scatter plot.

2010 MLB Season

0.650

0.600
Final win percentage

0.550

0.500

0.450

0.400

0.350

0
0.250 0.300 0.350 0.400 0.450 0.500 0.550 0.600 0.650 0.700
Win percentage on June 1

15. What can you conclude from the scatter plot?

16. Identify 2 data points that do not agree with your conclusion in Exercise 15.

17. A team has a 0.600 win percentage on June 1. Predict the team’s final win percentage.

18. There is an old cliché that the regular season in baseball is a

marathon, not a sprint. Does the scatter plot support this cliché?
Explain your reasoning.

19. Of the 8 teams that made the playoffs in 2010, the least
win total was 90. Is it possible that a team with a win
percentage less than 0.500 on June 1 made the playoffs?
Explain your reasoning.

20. Does the scatter plot support the following quote?

“Since 1996, only 9% of teams with a losing

record on June 1 finished the season with
90 wins.”

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Chapter 10 Review Exercises 499

Section 10.4
Duck Hunting The bar graph shows the data for an entire duck hunting season.
In Exercises 21–28, use the bar graph.

Location Summary
ry For Entire Season
Ducks shot & duration (hours)

120 3.0

Ducks shot per hour

100 2.5

80 2.0

60 1.5

40 1.0

20 0.5

0 0
Wetlands River blind Grasslands Lakeshore

Ducks shot Duration (hours) Ducks shot per hour

21. Which location had the greatest number of

ducks shot per hour?

22. How is the blue bar related to the red and

orange bars?

23. How many hours were spent duck hunting for

the entire season?

24. Which statistic is used to order the locations

from left to right on the bar graph? Explain
your reasoning.

25. What percent of the ducks were shot

on grasslands?

26. What was the average number of ducks shot

per hour for the entire season? Are any of the
locations outliers?

27. Hunting the wetlands yields 1.9 ducks per hour.

Hunting the lakeshore yields 2.2 ducks per hour.
Which of these statistics is a better predictor of
future hunts? Explain your reasoning.

28. What other observations can you make from the

bar graph?

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