SOLUTION: Trying to do my homework and I don't get the problem: If you make a salary of 53200 in Arkansas, how much would you have to make in Alabama to keep the same standard of living?

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Question 1123873: Trying to do my homework and I don't get the problem: If you make a salary of 53200 in Arkansas, how much would you have to make in Alabama to keep the same standard of living?
Chart 2012 Median Income
State Income Index
Alabama $43464 92.4
The chart was given to me for the homework
Arkansas $39018 82.9

Alaska $63648 135.3

Arizona $47044 100.0
Answer by greenestamps(13198) About Me  (Show Source):
You can put this solution on YOUR website!


The ratio of the state median incomes for Alabama and Arkansas is 43464/39018 = 1.114 to 3 decimal places.

The assumption in the problem is that the standard of living in different states is the same if the ratio of incomes is the same as the ratio of the state median incomes.

So if the salary is $53,200 in Arkansas, the salary needed in Alabama to keep the same standard of living is

$53,200 * 1.114 = $59,262