How is CAI calculated?

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Multiple Choice

How is CAI calculated?

Explanation:
The idea is that CAI shows the growth added in the current year. It’s the difference between the yield at the current age and the yield at the previous age. So CAI = Ya − Ya−1, where Ya is the yield at age a and Ya−1 is the yield at age a−1. This captures how much was added in the most recent year, not the total up to now or an average over a span. The other forms mix in averages over an interval or relate yield to age, which correspond to mean annual increment rather than the current annual increment.

The idea is that CAI shows the growth added in the current year. It’s the difference between the yield at the current age and the yield at the previous age. So CAI = Ya − Ya−1, where Ya is the yield at age a and Ya−1 is the yield at age a−1. This captures how much was added in the most recent year, not the total up to now or an average over a span. The other forms mix in averages over an interval or relate yield to age, which correspond to mean annual increment rather than the current annual increment.

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