Suppose Total Expenditures for a Typical Household in 2002 Were

question 165

Multiple Choice

Suppose total expenditures for a typical household in 2002 were $5,500 per month,while the cost of purchasing exactly the same items in 2012 was $6,875.If 2002 is the base year,the consumer price index (CPI) for the year 2012 equals

• A) 80.
• B) 100.
• C) 120.
• D) 125.
• E) 130.

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Definitions:

Stepwise Regression

A statistical method of building a regression model by successively adding or removing variables based solely on the t-statistics of their estimated coefficients.

Curvilinear Relationships

Relationships between two variables in which the change in one variable is associated with a non-linear change in another variable.

Dependent Variable

The variable in an experiment or study that is expected to change in response to manipulations of the independent variable.

Dummy Variable

A numeric variable used in regression models to represent categories of a qualitative variable with a series of zeros and ones.