When Something Is Indexed

question 58

Multiple Choice

When something is indexed:

• A) its value is automatically adjusted in proportion to the cost of living.
• B) it is expressed as a nominal value multiplied by a price index.
• C) its real value is converted into nominal terms for comparison.
• D) the value of consumption items is compared against the value of input prices.

---

Definitions:

Population

The entire group of individuals or instances about whom the data is collected and which the statistical analysis is based upon.

Confidence Interval

A span of values, coming from sample observations, expected to include the value of a not-yet-identified population characteristic.

Degrees Of Freedom

The number of independent data points in a statistical calculation that are free to vary.

T-Distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and the standard deviation is unknown.