Math and Economics in Real Situations-from Presidential elections to a cup of coffee
Math is all around us! Recently, math was used to calculate the predicted winner of the upcoming Presidential election! Every four years a predicted outcome is calculated based on numerous factors(some including the current economic situation of each state and previous election results(blue or red state)); all of these factors go into a prediction/forecasting equation with usually around a 75% chance of being accurate. 75% chance!! What sort of subjects go into this type of equation?? Well for starters, basic algebra. Next, a LOT of statistics. Lastly, equal amounts of economics!
Another instance-how do they come up with the price of a cup of coffee? Why isn't coffee just 25 cents? Well, if you calculated how much each cup of coffee you get out of a Folger's tin, its probably close to 25 cents or a lot less. Why? Its all about FACTORS. What is the difference between a Folger's cup of coffee and a Direct Trade cup of coffee bought at your local coffee shop? Just to name a few: Cost of material(cup/sleeve/lid), labor, profit going back to the farmers, higher quality of coffee (the extra time and effort put into producing high quality beans) and the need to produce a profit! All of these factors go into a nice, neat equation which equals the price you see at the register. So the next time you wonder why is this little cup of coffee so expensive, think about everything that went into making your drink!