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Lets talk math (dollars!)

  • Thread starter Thread starter Naughty Thoughts
  • Start date Start date
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Naughty Thoughts

Let's say there is a service that has been around for a few years. Let's say that at the moment, you pay $400 for that service but in 1995 the service was $250. Nearly double! Major rip off...

Currently, the mean income is $72,800 per year. This figure isn't accurate because there are a handful of mega-salary earners who push the average up. So let's whack 25% off for no reason other than being arbitrary. We'll call the annual adjusted mean income $54,600 (and ignore little things like tax, expenses, etc). That'd make the mean adjusted weekly income $1,050.

So this service is 38% of the weekly income.

In 1995, the mean income (again, including the top earners) was $28,494. Again, whack 25% off the top to bring it down to $21,370 (and 50 cents, but I'm rounding). This would make the adjusted mean weekly income in 1995 to be $410 (and change). This would make the 1995 cost of the service 60.8% of the weekly income.

Bam! 20% discount. You just need to do the math.

Incidentally, using the Reserve bank's online inflation calculator, something that was $250 in 1995 would be $407.98 in 2014 (2015 isn't an option yet). So there's that.

Okay, I'll put the math homework away now. :D
 
And the point your trying to make is.... ?

( Before we can discuss the many missing factors - lots of changes in last 20 years - in a point you might be possibly wanting to make - unless you're just showing you can handle percentages efficiently) :)
 
I love statistics.
Lets say 5% of vehicle occupant fatalities are not wearing seatbelts. So thats 1:20.
Therefore you are 19 times more likely to die in a car accident if you are wearing a seatbelt.
Not saying its right, but figures never lie. Pfft.
 
The Reserve calculator also does not cater for the effect of factors such as supply and demand, so is irrelevant when it is applied to the services industry.
 
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