In 1986,an Apple IIe Computer with 65 Kilobytes of Memory

question 120

Multiple Choice

In 1986,an Apple IIe computer with 65 kilobytes of memory cost around $1 500.Today,a $1 500 iMac computer (also made by Apple) comes with 8 gigabytes of memory.This illustrates the potential for what kind of bias in CPI calculations?

• A) New product bias
• B) Substitution bias
• C) Increase in quality bias
• D) Outlet bias

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Definitions:

Normal Curve

A symmetrical, bell-shaped curve that describes the distribution of many types of data where most of the observations cluster around the mean.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values differ from the mean of the set.

Scatterplot

A graphed cluster of dots, each of which represents the values of two variables. The slope of the points suggests the direction of the relationship between the two variables. The amount of scatter suggests the strength of the correlation (little scatter indicates high correlation).

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values are close to the mean.