At the End of Last Year the Consumer Price Index

question 357

Multiple Choice

At the end of last year the Consumer Price Index was equal to 157.5 and at the end of this year it was equal to 163.8. What is the inflation rate over this time period?

• A) 6.3 percent
• B) 4.0 percent
• C) 3.85 percent
• D) 10.1 percent

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Definitions:

Standard Deviation

A measure of variability that represents the average amount by which individual scores in a distribution vary from the mean.

Variance

A measure of variability that represents the mean of all squared deviation scores.

Nominal

Scale used to classify or categorize data into groups that have different names but are not related to each other in any other systematic way.

Scale of Measurement

The method or standard used to quantify the variables researchers are interested in, such as nominal, ordinal, interval, and ratio scales.