The Biases in the CPI Include the

question 241

Multiple Choice

The biases in the CPI include the

• A) old goods, unemployment, and inflation biases.
• B) substitution, new goods, and old goods biases.
• C) new goods, quality change, and substitution biases.
• D) old goods, new goods, and quality change biases.

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Definitions:

Correlation

Mutual or reciprocal relationship between two variables such that systematic changes in the values of one variable are accompanied by systematic changes in the values of another variable.

Regression

Use of a relationship between two or more correlated variables to predict values of one variable from values of other variables.

Measuring

The act of determining the size, quantity, or degree of something using standard units or tools.

Linear Regression Equation

Mathematical equation that predicts a score on one variable from a score on another variable based on the relationship between two variables.