Suppose That 1982 Is the Base Year for the Consumer

question 88

Multiple Choice

Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2014 the CPI was 190.What does this "190" mean?

• A)What cost $100 in 1982 on average cost 190 times as much in 2014.
• B)What cost $100 in 1982 on average cost $190 in 2014.
• C)What cost $100 in 1982 on average cost 0.19 times as much in 2014 (that is,it cost $19 in 2014).
• D)What cost $100 in 1982 on average cost $19 more in 2014.

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Definitions:

Negatively Correlated

Refers to two variables which move in opposite directions; when one variable increases, the other decreases, and vice versa.

Variables

Elements, features, or factors that are likely to vary or change and can be measured, controlled, or manipulated in experiments or models.

Opposite Directions

Refers to two lines or paths that diverge from each other, heading in completely different trajectories.

Positive Correlation

A relationship between two variables where if one variable increases, the other one also increases or if one decreases, the other also decreases.