Statistics for Management and Economics (Book Only)
11th Edition
ISBN: 9781337296946
Author: Gerald Keller
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 18.2, Problem 11E
To determine
Calculate the number of indicators.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The Consumer Price Index (CPI) is a measure of the
average change in price over time from a designated
reference period, at which it equals 100. The index is
based on prices of basic consumer goods and services.
The table provided lists the CPI for several years from
1960 to 2012. If the price change in cars parallels the
change in the CPI, what would a car sell for (to the
nearest dollar) in 2012 if a comparable model sold for
$7,500 in 1999?
Year
CPI
1960
29.6
1973
1986
44.4
109.6
156.9
1999
2012
229.6
In 2012, a car would sell for approximately $ 58,176
(Round to the nearest dollar.)
a) Explain why fixed-weighted measures lead to substitution bias.
b) Look at the following table. What is the base year?
Year
CPI
Nominal Income
Year
CPI
Nominal Income
1990
41.8
400
2003
107.6
45000
1991
44.4
650
2004
109.6
50000
1992
49.3
800
2005
113.6
55000
1993
53.8
2000
2006
118.3
65000
1994
56.9
5000
2007
124
70000
1995
60.6
9000
2008
130.7
85000
1996
65.2
12000
2009
136.2
90000
1997
72.6
15000
2010
140.3
105000
1998
82.7
19000
2011
144.5
115000
1999
90.9
22000
2012
148.2
125000
2000
96.5
28000
2013
152.4
132000
2001
99.6
32000
2014
156.9
137000
2002
103.9
35000
2015
160.5
150000
c) What is the real income in the year 2012 and 2013?
d) What is the percentage change in CPI between years 2012 and 2013?
e) What is the percentage change in Nominal Income between years 2012 and…
Can the average physical product be a decimal?
Chapter 18 Solutions
Statistics for Management and Economics (Book Only)
Ch. 18.1 - Prob. 1ECh. 18.1 - Prob. 2ECh. 18.1 - Prob. 3ECh. 18.1 - Prob. 4ECh. 18.1 - Prob. 5ECh. 18.1 - Prob. 6ECh. 18.1 - Prob. 7ECh. 18.1 - Prob. 8ECh. 18.1 - Prob. 9ECh. 18.1 - Prob. 10E
Ch. 18.2 - Prob. 11ECh. 18.2 - Prob. 12ECh. 18.2 - Prob. 13ECh. 18.2 - Prob. 14ECh. 18.2 - Prob. 15ECh. 18.2 - Prob. 16ECh. 18.2 - Prob. 17ECh. 18.2 - Prob. 18ECh. 18.2 - Prob. 19ECh. 18.2 - Prob. 20ECh. 18.2 - Prob. 21ECh. 18.2 - Prob. 22ECh. 18.2 - Prob. 23ECh. 18.2 - Prob. 24ECh. 18.2 - Prob. 25ECh. 18.2 - Prob. 26ECh. 18.2 - Prob. 27ECh. 18.2 - Prob. 28ECh. 18.2 - Prob. 29ECh. 18.2 - Prob. 30ECh. 18.2 - Prob. 31ECh. 18.2 - Prob. 32ECh. 18.2 - Prob. 33ECh. 18.3 - Prob. 34ECh. 18.3 - Prob. 35ECh. 18.3 - Prob. 36ECh. 18.3 - Prob. 37ECh. 18.4 - Prob. 38ECh. 18.4 - Prob. 39ECh. 18.4 - Prob. 40ECh. 18.4 - Prob. 41ECh. 18.4 - Prob. 42ECh. 18 - Prob. 43CECh. 18 - Prob. 44CECh. 18 - Prob. 45CECh. 18 - Prob. 46CECh. 18 - Prob. 47CECh. 18 - Prob. 48CECh. 18 - Prob. 49CE
Knowledge Booster
Similar questions
- Define the term consumer price index (CPI)?arrow_forwardA number of statistics are computed to measure the price level, such as the GDP deflator and the CPI. The choice of which of these measures to use depends in many cases on the specific question in which you are interested. For each of the following situations, state whether the CPI or GDP deflator is a more appropriate measure to use and explain why the statistic is preferred. a. You are interested in looking at the impact of higher prices of imported oil in the overall cost of living. b. The government is interested in whether increases in defense spending are affecting the price level. c. An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.arrow_forwardDefine “retail sales” index and tell why it is important as an economic indicator.arrow_forward
- Consider the data for a known country for the consumer price index (CPI), by components:(base year 2015 = 100) a) Interpret the value of the CPI index in December 2018. b) Calculate the year-on-year inflation rate corresponding to the CPI, in December 2018. c) Suppose the GDP Deflator in 2020 is predicted to be 1.09. What can be interpreted?arrow_forwardDefine the term Consumer Price Index?arrow_forwardUsing the data in the table, compare the percentage rates of change in nominal GDP, real GDP, and the GDP Price Index over these three time periods. Note changes in the magnitudes of each. Are there periods when prices grew more rapidly? Are there periods where real output grew more rapidly? Note how these affect the percentage change in nominal GDP. Make specific observations based on the information in the table.arrow_forward
- The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Lucia spends all of her money on comic books and beignets. In 2012, she earned $15.00 per hour, the price of a comic book was $5.00, and the price of a beignet was $3.00. Which of the following give the nominal value of a variable? Check all that apply. a. Lucia's wage is 3 comic books per hour in 2012. b. Lucia's wage is $15.00 per hour in 2012. c. The price of a beignet is 0.6 comic books in 2012. Which of the following give the real value of a variable? Check all that apply. a. Lucia's wage is $15.00 per hour in 2012. b. Lucia's wage is 5 beignets per hour in 2012. c. The price of a comic book is $5.00 in 2012. Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Lucia's wage has risen to $30.00 per hour. The price of a comic book is $10.00 and the price of a beignet is $6.00.…arrow_forwardDifferentiate and explain the following terms: iii. Nominal Scale and Ordinal Scalearrow_forwardInterpret the following results with (UR) uemployment rate as dependent variable and (INF) inflation as the independent variable.arrow_forward
- The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Simone spends all of her money on comic books and beignets. In 2015, she earned $14.00 per hour, the price of a comic book was $7.00, and the price of a beignet was $2.00. Which of the following give the nominal value of a variable? Check all that apply. n The price of a beignet is $2.00 in 2015. n Simone's wage is $14.00 per hour in 2015. n Simone's wage is 2 comic books per hour in 2015. Which of the following give the real value of a variable? Check all that apply. The price of a comic book is 3.5 beignets in 2015. n Simone's wage is 7 beignets per hour in 2015. n Simone's wage is $14.00 per hour in 2015. Suppose that the Fed sharply increases the money supply between 2015 and 2020. In 2020, Simone's wage has risen to $28.00 per hour. The price of a comic book is $14.00 and the price of a beignet is $4.00. In 2020, the relative price of a…arrow_forwardIs the PW measure easy to calculate and apply? How?arrow_forwardThis table indicates the historical level of the Consumer Price Index (CPI) for the United States for 1921, 1922, and 1923. Complete the table by (1) selecting the inflation rates for 1922 and 1923, and (2) indicating for each year whether there has been inflation, deflation, or hyperinflation. Year CPI Inflation Rate Change in Price Level 1921 17.9 — — 1922 16.8 1923 17.1 What rates of inflation for 1924 would be consistent with disinflation between 1923 and 1924? Check all that apply. 1.7% 11.8% 51.8% 1.8% What rates of inflation for 1924 would be consistent with hyperinflation? Check all that apply. 15.0% -1.8% 100.0% 120.0%arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education