If the Consumer Price Index Changes from 120 in Year

question 63

Multiple Choice

If the Consumer Price Index changes from 120 in year one to 144 in year two, the rate of inflation in the intervening year is

• A)10 percent.
• B)12.5 percent.
• C)20 percent.
• D)25 percent.
• E)30 percent.

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Definitions:

Significant Level

The likelihood of incorrectly dismissing the null hypothesis, often represented by the symbol alpha (α).

Standard Error Of Estimate

The standard deviation of the observed values from the regression line, indicating the precision of the regression estimate.

Error Variable

A variable that represents the difference between a predicted value and the observed actual value in a statistical model.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set deviate from the mean.