I the CPI Serves Only One Major Function: as an Economic

question 24

Multiple Choice

i. The CPI serves only one major function: as an economic indicator of the rate of inflation. ii. To construct a special-purpose index designed to measure general business activity, the weights are based on the judgments of the statistician and assigned to each series.
iii. The Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Interaction Effects

The impact on a dependent variable that changes depending on the levels of two or more independent variables.

Factorial Designs

Experimental setups that allow researchers to examine the effects of two or more factors by changing them simultaneously and observing the results.

Independent Variables

Variables in an experiment or model that are manipulated or changed to observe their effects on dependent variables.

Single-Factor Designs

Experimental designs that involve only one independent variable to investigate its effect on a dependent variable.