In order to make room for next years model car dealership re

In order to make room for next year’s model, car dealership reduced the price of all new cars on their lot. One car that used to cost $24,995 not cost $22,355. Suppose we use the old price as a “measuring stick” to measure the new price as shown.

How many times as large is the new price as to the old price? What does this mean in terms of a measurement process?

Suppose we want to fill in the following blank: “The new price is ____% of the old price.” To answer this question, what do we need to think of as our “measuring stick” (unit)? How is this different in part (a)?

Fill in the blank in part (b).

Solution

Ans: To write how many times as large the new price is compared to old price. We divide the new

price by the old price. So,

(New price/ Old price) = 22,355/24,995 = 0.8943

So the new price is 0.8943 times as the old one. In terms of measurement process it simply means that if this ratio is greater than 1 than New price is bigger than Old price and vice versa.

For percentage we simply multiply this ratio by 100. So 0.8943 * 100 = 89.43%

So new price is 89.43% of the older one.