If the Price Index Is 120 in 2001 and 126

question 54

Multiple Choice

If the price index is 120 in 2001 and 126 in 2002,what is the inflation rate?

• A)5 percent
• B)6 percent
• C)20 percent
• D)26 percent

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Definitions:

Exponential Distribution

A constant probability distribution that models the time intervals between occurrences in a process where events happen continuously, independently, and at a steady average rate.

Density Function

A function that describes the likelihood of a random variable to take on a given value, often used in the context of continuous probability distributions.

F(x)

Generally refers to a function of x, which might denote a variety of mathematical relationships depending on the context.

Exponential Distribution

Exponential distribution is a continuous probability distribution used to model the time between events in a Poisson process, characterizing occurrences that happen independently and at a constant average rate.