For a Given Year, an Index Number of Average Prices

question 10

Multiple Choice

For a given year, an index number of average prices (such as the Consumer Price Index) is the ratio of the

• A)price of several goods in the given year to that in the base year.
• B)average price of several goods in the base year to that in the given year.
• C)average price of all goods in the given year to that in the base year.
• D)weighted prices of a typical bundle of goods purchased in a given year to that in the base year.
• E)weighted prices of a typical bundle of goods purchased in the base year to that in the given year.

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Definitions:

Equal

Pertaining to the concept of sameness or equivalence in value, quantity, or meaning.

Set of Data

A collection of related pieces of information considered collectively, often consisting of numerical values or categorical classifications.

Mean

The average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of those numbers.

Data

Information collected for reference or analysis, often numerical, that can be used for calculation and statistical study.