Topic 2.1: Indexes

I've found that students really enjoy learning about index numbers. Ok, maybe "enjoy" is a bit overstating it, but they find it a very practical application of everyday statistics.

Index Numbers reading

Practice Index Numbers

Be sure to check out the CPI calculator and the full CPI table.

Pok-statsUniversal-IndexNumbers

A particularly useful (and multi-functional) assignment is a "Stocks Assignment". This assignment is useful for a number of reasons including

    1. exposes students to stocks not because there is something particularly valuable about stocks (although there is), but because knowledge about the stock market is really also about cultural and social capital

    2. gives students practice reading line and multiple line charts to see changes

    3. gives students practice with absolute and relative change

Supplemental readings:

  • Business Insider published this article about a couple saving $12,000. Stunningly, they seemed to have left out any allowance for cost of living expenses in different places! In other words, the couple is living in Indianapolis, IN and earning a combined income of $60,000. They manage to save $12,000 (20% of their income which is pretty impressive). However, that's only part of the story...what do you think would be a comparable salary in NYC and what does that say about the SES of the couple?