The Consumer Price Index (CPI) Is Calculated by Averaging the Prices

question 85

Multiple Choice

The consumer price index (CPI) is calculated by averaging the prices of various items after assigning a weight to each item. The following table gives the consumer price indexes for selected years from 1940 through 2002, reflecting buying patterns of all urban consumers, with x representing years past 1900. Find an equation that models these data. If it's necessary, round your calculations to four decimal places. ​ ​
Source: U.S. Bureau of the Census
​

---

Definitions:

Quadratic Model

A mathematical model or equation that involves terms up to the second degree, typically represented as ax^2 + bx + c = 0.

Second-Order Polynomial Model

A model representing a relationship between variables as a quadratic equation, including linear, squared, and potential interaction terms.

MSR / MSE

MSR (Mean Square Regression) and MSE (Mean Square Error) are measures in regression analysis, where MSR evaluates the variance explained by the model, and MSE measures the average error of the model’s predictions.

F-test Statistic

A statistical test used to compare the variances of two populations based on sample data from those populations.