Mr. Bunker lives on beer and pretzels

1.45 Mr. Bunker lives on beer and pretzels. In 2000, he bought 1000 six-packs of beer for $2.00 per six-pack and 500 bags of pretzels for $1.00 per bag. In 2010,Bunker’s beer cost $3.00 per six-pack and his pretzels cost $2.00 per bag. One way to calculate Bunker’s rate of inflation is 100* (C2010-C2000) C2000 where C2010 =cost of 1000 six-packs and 500 bags of pretzels in 2010 and C2000 = cost of 1000 six-packs and 500 bags of pretzels in 2000. What was the percentage increase in Bunker’s cost of living between 2000 and 2010? If we calculate a Bunker Price Index (BPI) and scale this BPI to equal 100 in 2000, what is the 2010 value of the BPI?1.30 A researcher wants to see if U.S. News & World Report rankings influence the number of applications received by colleges and universities. He obtains the unadjusted data shown in Table 1.17 on applications to one small liberal arts college. To take into account the nationwide growth of college applications, this researcher uses data from the Consortium on Financing Higher Education (COFE) showing that, during this period, college applications increased by an average of 4 percent per year. He consequently adjusted the number of applications to this college by dividing each value by 1.04. Identify his mistake and explain how you would calculate the adjusted values correctly. Do not do the actual calculations; just explain how you would do them.Table 1.17 Exercise 1.30 Number of Applications Unadjusted Adjusted1987 3192 3069.21988 2945 2831.71989 3176 3053.81990 2869 2758.71991 2852 2742.31992 2883 2772.11993 3037 2920.21994 3293 3166.31995 3586 3448.1