Table 13-20 Salaries in Major League Baseball Have Soared Over the Last

question 230

Essay

Table 13-20
$\begin{array}{|c|c|c|}\hline \text { Year } & \begin{array}{c}\text { Median Salary: } \\\text { New York Yankees }\end{array} & \begin{array}{c}\text { CPI (1982-1984= } \\\mathbf{1 0 0})\end{array} \\\hline 1989 & \$ 500,000 & 124 \\\hline 2015 & 3,300,000 & 238 \\\hline\end{array}$ Salaries in major league baseball have soared over the last 30 to 40 years. Some of the salary increase is due to inflation. The table above reports the consumer price index and the median nominal salary of the New York Yankees for 1989 and 2015.
Source: USA Today Salaries Database, http://www.usatoday.com/sports/mlb/yankees/salaries/2015/team/all/
-Refer to Table 13-20.Calculate the real median salary of the New York Yankees in both 1982-1984 dollars and 2015 dollars.Calculate the percentage increase in the median salary of the Yankees from 1989 to 2015 in both nominal terms and in real terms.

---

Definitions:

Flashbulb Memory

Highly detailed, exceptionally vivid memories of a significant event, which seem to be recorded in the mind as though with the flash of a camera.

High School Graduation

The completion of the educational curriculum required by a high school, culminating in the receipt of a diploma.

Memory Consolidation

The process by which short-term memories are transformed into long-term memories, stabilizing and storing information over time.

Infantile Amnesia

The inability of adults and older children to recall episodic memories (memories of situations or events) from the first few years of life.