Checkpoint Answer Key: Understanding a Drought Index
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**Answers**

1. What is the start date of the phase 1 contract? **1-May**

2. For the start date, what does the number in parentheses represent? **The dekad or 10-day period in of the year in which the contract will begin**

3. What is the end date of the phase 1 contract? **30-June**

4. What is the trigger of the phase 1 contract (mm)? What does this mean? **13mm:** *This means that there will only be a payout if rainfall is less than 13mm*

5. What is the exit of the phase 1 contract (mm)? What does this mean? **7mm:** *This means that if there is less than 7mm of rainfall, there will be a full payout.*

6. If the total rainfall during the contract window is 10mm, will there be a payout? If Yes, would this be a partial or full payout? **Yes (partial payout)**

7. What is the maximum amount of rainfall that is counted for each dekad? **25mm**

8. According to this example contract, how many phase 1 payouts would there have been in the last 15 years? **3**

9. What years would have paid out for the 1st phase? **2000, 2004, 2009**

10. Which year would have paid out the most?  What percentage of maximum payout? Why does the percent of maximum payout received change for different years? **2000, 97%:** *The percent of maximum payout received changes for different years because the rainfall would have been at different levels between the trigger and the exit.*