Which of the Following Assumptions Is NOT a Problem in Using

question 172

Multiple Choice

Which of the following assumptions is NOT a problem in using the consumer price index (CPI) to accurately state the rate of inflation?

• A) The CPI assumes that people do not substitute goods.
• B) The CPI does not account for quality changes.
• C) The CPI does not include new products.
• D) The CPI does not deal with producer prices.

---

Definitions:

Standard Deviations

Standard deviation is a measure of the dispersion or variability within a set of data, indicating how much individual data points deviate from the mean of the data set.

Null Hypothesis

A statement that there is no effect or no difference and that any observed effect is due to sampling or experimental error.

Assumption of Normality

This refers to the assumption that a dataset is normally distributed, often required in parametric statistical tests.

Dependent Variable

The variable in an experimental study that is expected to change or respond as a result of manipulations of the independent variable.