The Consumer Price Index

question 9

Multiple Choice

The consumer price index:

• A)tracks the value of output over time.
• B)is not tied to cost-of-living adjustments.
• C)doubles every five years in the economy.
• D)is a weighted average of consumer prices.
• E)is a broader price index measure than the implicit GDP deflator.

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Definitions:

Percentiles

A measure that indicates the value below which a given percentage of observations in a group of observations falls.

Stanines

Derived from the term “standard nines,” this is a standardized score frequently used in schools. Often used with achievement tests, stanines have a mean of 5 and a standard deviation of 2, and range from 1 to 9.

T-scores

Standardized scores with a mean of 50 and a standard deviation of 10, used to compare an individual's score against a normative sample.

Grade Equivalents

A metric used in education to compare a student's test score with the average scores of students in other grades.