Consider golfers who led the Professional Golfers Associatio

Consider golfers who led the Professional Golfers Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation). To convert the original earnings of Nicklaus, Trevino, and Stadler, use the formula for converting dollar figures from an earlier era into year 2009 U.S dollars. Using those figures, fll in the following table, making sure to round your responses to the nearest U.S. dollar. Nominal Winnings (Dollars) 140,752 157,037 446,462 10,508,16.3 U.S. CPI (1983 100) 31.5 38.8 96.5 214.5 Golfer innings in 2009 Dollars Year 1965 Jack Nicklaus 1970 Lee Trevino 1982 Craig Stadler 2009 Tiger Woods 10,508,163 True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is not the same as the golfer with the highest PGA winnings after adjusting for inflation. O True O False

Solution

Calculate Jack Nicklaus\'s winnings in 2009 dollars -

Winnings in 2009 dollars = Nominal winnings * (CPI in 2009/CPI in 1965)

Winnings in 2009 dollars = $140,752 * (214.5/31.5) = $140,752 * 6.81 = $958,521

The Jack Nicklaus\'s winnings in 2009 dollars is $958,521.

Calculate Lee Trevino\'s winnings in 2009 dollars -

Winnings in 2009 dollars = Nominal winnings * (CPI in 2009/CPI in 1970)

Winnings in 2009 dollars = $157,037 * (214.5/38.8) = $157,037 * 5.53 = $868,415

The Lee Trevino\'s winnings in 2009 dollars is $868,415.

Calculate Craig Stadler\'s winnings in 2009 dollars -

Winnings in 2009 dollars = Nominal winnings * (CPI in 2009/CPI in 1982)

Winnings in 2009 dollars = $446,462 * (214.5/96.5) = $446,462 * 2.22 = $991,146

The Craig Stadler\'s winnings in 2009 dollars is $991,146.

The golfer with the highest PGA winnings in nominal dollars is the same as the golfer with the highest PGA winnings after adjusting for inflation.

Hence, the given statement is False.