The CPI for "Personal Computers and Peripheral Equipment" in July

question 62

Multiple Choice

The CPI for "personal computers and peripheral equipment" in July of 2001 was 29.3 (1982-1984 =
100) . Interpret this index.

• A) There was no significant increase in the price of "personal computers and peripheral equipment"
• B) The price of "personal computers and peripheral equipment" increased 29.3%.
• C) The price of "personal computers and peripheral equipment" decreased 70.7%.
• D) If the average price of a computer in 1982-1984 was $879.00, the CPI for "personal computers and peripheral equipment" would predict that the price of a computer in July
• 2001 would be $3,000.00.
• E) The price of "personal computers and peripheral equipment" decreased 29.3%.

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Definitions:

Sample Size

The number of observations or data points selected from a population for the purpose of statistical analysis, which can influence the accuracy and reliability of results.

Normally Distributed

Describes a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Probability

A measure of the likelihood of occurrence of a particular event or outcome, often expressed as a number between 0 and 1.

NORM.DIST

A function in various statistical software that returns the normal distribution for a specified mean and standard deviation.