Suppose That the Total Expenditures for a Typical Household in 2010

question 142

Multiple Choice

Suppose that the total expenditures for a typical household in 2010 equaled $5,500 per month, while the cost of purchasing exactly the same items in 2015 was $6,875.If 2010 is the base year, the CPI for the year 2015 equals:

• A)0.80
• B)1.00
• C)1.20
• D)1.25

---

Definitions:

Experimental Group

The group in an experiment that receives the treatment or condition being tested, as opposed to the control group which does not.

Random Assignment

A method used in experiments to distribute participants randomly across different groups to ensure unbiased results.

Demand Characteristics

Implicit cues in an experiment that influence the participants' behavior towards a particular outcome.

Random Assignment

A method used in experiments to divide individuals into groups in a way that every participant has an equal chance of being assigned to any group, helping to ensure that the groups are comparable.