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© 2014 Pacific Crest
51
Step
Explanation
1.
Identify the number to make
sense of
Pick out of the writing the precise number that caused you the
problem
WATCH
IT WORK!
42.6 percent
2.
Identify three issues about the
number
What questions does the number generate when reading it?
1. What is 42.6 a percent of?
2. What is not in the number (where or what is the 57.4 percent)?
3. What others numbers are related to this one?
3.
Clarify the context
Describe the important aspects of the situation in which the
number arises, performing any research necessary to help you
understand unfamiliar terms or abbreviations.
The Gross Domestic Income (GDI) of the United States is a measure very similar to the
Gross Domestic Product, which is the value of all goods and services produced in the US
in a year. The GDI measures the income received for selling the same goods and services.
It consists of wages, corporate profits, interest and investment income, farm income, and
non-farm unincorporated business.
4.
Clarify what the number
means in context
Integrate the number back into the context and address the
issues within the context
42.6% of the Gross Domestic Income goes to workers, but that percentage was higher,
previously. Profits of companies have, during the same period, increased. Thus, the share
of the pie goes to workers has decreased and the share going to companies has increased.
Without trying to track or capture exact amounts and knowing that the “other” category
has almost certainly changed, the situation then and now seems to be something like this:
Now
42.6%
double previous
= 100%
(GDI)
worker wages
company profits
other
Then
> 42.6%
= 100%
(GDI)
worker wages
company
profits
other
5.
Implications of the number
and related issues
What does the number possibly represent and imply?
The money that a business obtains for selling goods goes to pay worker wages (among
other expenses). The remainder the business keeps as corporate profits. Both worker
wages and corporate profits are part of the GDI.
1.5 Number Sense