Other >> Economics

Wage Inflation

by Christopher Frazier


Submitted : Spring 2012

The objective of this project was to find the trend in annual wage increases of food preparation workers over a twelve year period and also find the average annual wage of food preparation workers from the time they join the company to the time they retire. I was given the annual wage change percentages from 2001 to 2012, and the salary for a worker in 2001 ($35,000). In order to meet this objective, I first graphed the data I was given. From this I found a curve function that resembled the trend in data points. I then used linear regression to find the a and b values of my model. Using this model, I was able to calculate a formula for the annual wage of food preparation workers as a function. Finally from this formula I was able to find the formula for the average annual wage by applying the mean value theorem for integrals. I learned how important trendlines and calculus can be in understanding concepts and predicting what will happen in the business world.



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Advisors :
Arcadii Grinshpan, Mathematics and Statistics
Stephen Lappano, MUG Specialist
Suggested By :
Christopher Frazier