The Price Index Is 320 in One Year and 360

question 160

Multiple Choice

The price index is 320 in one year and 360 in the next. What was the inflation rate?

• A)6.7 percent
• B)8 percent
• C)11.1 percent
• D)12.5 percent

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Definitions:

Dummy Variables

Numerical variables used in regression analysis to represent subgroups of the sample in your study.

Regression Model

A statistical technique that models and analyzes the relationships between a dependent variable and one or more independent variables to predict outcomes.

Qualitative Independent Variable

A variable that categorizes or describes attributes or characteristics, typically non-numeric, influencing the dependent variable.

F-ratio

A statistical value used in the analysis of variance (ANOVA) to compare the variability among group means to the variability within groups.