The CPI Market Basket

question 131

Multiple Choice

The CPI market basket

• A)contains one unit of each good purchased by the average consumer.
• B)weights the goods and services according to the budget of an average urban household.
• C)is comprised of a representative sample of the goods that the government guesses people buy.
• D)includes only goods and not services.
• E)includes only U.S.-produced goods and services.

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Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test used to make a decision about the null hypothesis.

Null Hypothesis

A statement of no effect or no difference, used as a starting assumption for statistical significance testing.

Grand Mean

The mean of means, calculated by taking the average of several group means.

Completely Randomized

A design in experiments where all subjects have an equal chance of being assigned to any group or treatment.