Tugas GSLC Statis

1. Deflating a Series by
Price Indexes
Kelompok : - Jehan Tasya Nirwana (2201820420)
- Niken Elvira Putri ( 2201809033 )
- Rizky Surya Danny ( )

2. Deflating a Series by Price Indexes
• In order to correctly interpret business activity over time when it is expressed
in dollar amounts, we should adjust the data for the price-increase effect.
• Removing the price-increase effect from a time series is called deflating the
series.
• Deflating actual hourly wages results in real wages or the purchasing power
of wages.

3. Deflating a Series by Price Indexes
• McNeer Cleaners, with 46 branch locations, has had the total sales revenues shown on the
next slide for the last five years. Deflate the sales revenue figures on the basis of 1982-1984
constant dollars. Is the increase in sales due entirely to the price-increase effect?
Year Total Sales ($1000) CPI
2018 7,98 105,3
2019 8,78 112,6
2020 9,98 205,8
2021 12,31 265,9
2022 18,19 275,3

4. Deflating a Series by Price Indexes
• Adjusting Revenue For the Price-Increase Effect
Year
Deflated Sales
($1000)
Annual Changed
%
2018 0,075783476 -
2019 0,077975133 -9992%
2020 0,048493683 -9995%
2021 0,0462956 -9995%
2022 0,066073375 -9993%
After adjusting, revenue is still increasing at an average rate of -9994% per year

5. Deflating a Series by Price Indexes
0
1000
2000
3000
1 2 3 4 5
2018 2019 2020 2021 2022
0.075783476
0.077975133
0.048493683 0.0462956 0.066073375
RealSalesRevenue$1000
Deflated Sales $1000
Year
Deflated Sales ($1000)