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.

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Definitions:

Zone of Tolerance

The range within which customers are willing to accept variations in service delivery before their satisfaction is affected.

Request

An act of asking formally or politely for something.

Legitimate Power

Power that is based on position and mutual agreement; agent and target agree that the agent has the right to influence the target.

Mutual Agreement

A mutual agreement involves a concord or pact between two or more parties, where each party has a clear understanding and is in accord about the terms and conditions discussed.