If the Consumer Price Index (CPI)was 120 at Year-End 2008

question 221

Multiple Choice

If the consumer price index (CPI) was 120 at year-end 2008 and 126 at year-end 2009,inflation during 2009 was approximately

• A)4 percent.
• B)5 percent.
• C)6 percent.
• D)7 percent.

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Definitions:

Standard Deviation

A measure of the dispersion or spread of a set of numbers, indicating how much the individual numbers differ from the mean of the set.

Mean

The average of a set of numbers, calculated by dividing the sum of the values by the count of numbers.

Probability Density Functions

Functions that describe the relative likelihood for a continuous random variable to take on a given value.

Continuous Random Variables

Variables that can take an infinite number of values within a given range, often associated with measurements in time, distance, or temperature.