A CPI That Equals 1

question 141

Multiple Choice

A CPI that equals 1.34 in 2016 (when 2010 is the base year) means that:

• A)prices in 2016 are 34 percent higher than in 2015.
• B)the CPI equals $1.34 in 2016.
• C)the inflation rate in 2016 is 134 percent.
• D)the average level of prices is 34 percent higher in 2016 than in the base year.

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Definitions:

Level of Significance

A threshold of probability set by the researcher to determine the cutoff at which an observed result is considered statistically significant.

Degrees of Freedom

A concept in statistics that represents the number of independent values or quantities that can vary in the calculation of a statistic.

T-statistic

A type of statistic used in hypothesis testing, derived from the t-distribution to compare two means or test a correlation.

Sample Size

The quantity of data points or observations gathered in a sample from a population to conduct statistical analysis.