Table 16-6

question 369

Multiple Choice

Table 16-6.The table below applies to an economy with only two goods - hamburgers and hot dogs.The fixed basket consists of 4 hamburgers and 8 hot dogs.

-Refer to Table 16-6.Which of the following scenarios is consistent with this statement? "The rate of inflation was 23.75 percent for 2011."

• A) The price of a hot dog was $2.44 rather than $3.30 in 2010,with other prices in the table remaining fixed.
• B) The price of a hot dog was $4.22 rather than $3.63 in 2011,with other prices in the table remaining fixed..
• C) The price of a hamburger was $3.80 rather than $5.50 in 2010,with other prices in the table remaining fixed.
• D) The price of a hamburger was $6.60 rather than $5.61 in 2011,with other prices in the table remaining fixed.

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Definitions:

Least-Squares Fit

A method of estimating the parameters of a model by minimizing the sum of the squares of the differences between the observed and predicted values.

Pass%

The percentage of individuals or units that meet or exceed a defined benchmark or standard.

Standard Error

A measure of the statistical accuracy of an estimate, often used to quantify the uncertainty in the mean of a population estimated from a sample.

Pearson's Correlations

A measure of the linear correlation between two variables, ranging from -1 to 1, where 1 means a perfect positive linear correlation, and -1 means a perfect negative linear correlation.