If yield at age a is 120 units and yield at age a-1 is 110 units, what is CAI?

If yield at age a is 120 units and yield at age a-1 is 110 units, what is CAI?

• A. 10
• B. 120
• C. 110
• D. 210

Answer: (A)

CAI represents the growth that occurs in the most recent period, i.e., the increase in yield from the previous age to the current age. It is calculated as yield at age a minus yield at age a-1. With yields of 120 at age a and 110 at age a-1, CAI = 120 − 110 = 10 units. This 10 units quantify the growth during that interval. The other numbers are the total yields at each age (not the increment) or their sum, which isn’t what CAI measures.

CAI represents the growth that occurs in the most recent period, i.e., the increase in yield from the previous age to the current age. It is calculated as yield at age a minus yield at age a-1. With yields of 120 at age a and 110 at age a-1, CAI = 120 − 110 = 10 units. This 10 units quantify the growth during that interval. The other numbers are the total yields at each age (not the increment) or their sum, which isn’t what CAI measures.