Table Given Below Shows the Consumer Price Index (CPI) for Selected

question 24

Multiple Choice

Table given below shows the Consumer Price Index (CPI) for selected years. The mathematical model for the data given below is $y = - 0.031 t ^ { 2 } + 5.887 t + 24.429$ , where $y$ represents the CPI and $t$ represents the year, with $t = 5$ corresponding to 1975 . Use the model to predict the CPI for the year 2010. Round your answer to the nearest integer.
$\begin{array}{|c|c|c|c|c|c|c|c|}\hline \text { ear } & 975 & 980 & 985 & 990 & 995 & 000 & 005 \\\hline \text { PI } & 2.8 & 0 & 06.6 & 30.7 & 52.4 & 71.2 & 94.3 \\\hline\end{array}$

• A) \(y = 211\)
• B) \(y = 209\)
• C) \(y = 192\)
• D) \(y = 173\)
• E) \(y = 210\)

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Definitions:

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Behavioral Economists

Scholars who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Faulty Heuristics

Incorrect or misleading cognitive shortcuts that are used to make decisions or solve problems.