If the Basket of Goods and Services Used to Calculate

question 131

Multiple Choice

If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals

• A)325.
• B)200.
• C)450.
• D)225.

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Definitions:

σ (Standard Deviation)

A statistical measure of the dispersion or variation of a set of values, representing the average distance from the mean.

μ (Mean)

A symbol representing the mean or average of a set of numbers, calculating by summing all numbers and dividing by the count of numbers.

Cumulative Distribution Function

A function that gives the probability that a random variable is less than or equal to a certain value.

Random Variable

An attribute whose numerical values stem from the occurrence of a random event.