If This Year the CPI Is 110 and Last Year

question 10

Multiple Choice

If this year the CPI is 110 and last year it was 100, then

• A) the cost of the CPI basket of goods and services has increased this year by 110 percent.
• B) the price level as measured by the CPI has increased by 10 percent.
• C) the inflation rate for this year has increased by 10 percent over last year's inflation rate.
• D) All of the above are correct.

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Definitions:

Type I Error

A Type I Error occurs when the null hypothesis is incorrectly rejected when it is actually true.

Set Of Comparisons

A general term that could describe various statistical or evaluative processes aimed at comparing different sets of data or outcomes.

Familywise Error

The probability of making one or more Type I errors across multiple hypothesis tests.

Tukey Test

A statistical test used to compare the means of three or more groups to find out which ones significantly differ from each other.