Which of the Following Answers Would Accurately Describe the Bias

question 5

Multiple Choice

Which of the following answers would accurately describe the bias in the CPI resulting from the fact that oil prices suddenly increase?

• A) The CPI would underestimate the cost of living.
• B) The CPI would overestimate the cost of living.
• C) The CPI would not be biased as a result of a sudden rise in oil prices.
• D) The CPI could overestimate or underestimate the cost of living, depending upon the quantity of oil purchased in that year.

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Definitions:

Neuroticism

A character trait marked by feelings of nervousness, apprehension, irritability, unease, envy, annoyance, jealousy, and feeling isolated.

Five-factor Model

A theory that describes personality using five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Neuroticism

A personality trait characterized by anxiety, moodiness, worry, and other emotional instability forms.

Extraversion

A characteristic of being sociable, energetic, and having a liking for engaging with others.