Regardless of the Index Used

question 9

Multiple Choice

Regardless of the index used:

• A) inflation is measured as a percent increase in the index from one year to the next.
• B) the same results for inflation are reached, so each index is equally useful.
• C) the measurement of inflation is the same, so the index that is easiest to calculate is often used.
• D) an accurate picture is portrayed regarding how prices for all consumer goods and services change from year to year.

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Definitions:

Confidence Level

The probability that the true parameter will fall within the confidence interval, expressed as a percentage.

Sample Size

The number of observations or datapoints that are used in a statistical sample.

Finite Population Correction Factor

A factor applied in sampling calculations to adjust for the size of the population when the sample size is a substantial fraction of the total population, to improve the estimation accuracy.

Margin of Error

An indicator of the confidence in the results of a survey or experiment, expressing the amount of potential error in the measurements.