Problems 69-72 require the following discussion. The consumer price index (CPI) indicates the relative change in price over time for a fixed basket of goods and services. It is a cost of living index that helps measure the effect of inflation on the cost of goods and services. The CPI uses the base period 1982-1984 for comparison (the CPI for this period is 100). The CPI for March 2015 was 236.12 . This means that $ 100 in the period 1982-1984 had the same purchasing power as $ 236.12 in March 2015. In general, if the rate of inflation averages r percent per annum over n years, then the CPI index after n years is C P I = C P I 0 ( 1 + r 100 ) n where C P I 0 is the CPI index at the beginning of the n -year period. Source: U.S. Bureau of Labor Statistics Consumer Price Index The base period for the CPI changed in 1998. Under the previous weight and item structure, the CPI for 1995 was 456.5 . If the average annual inflation rate was 5.57 % , what year was used as the base period for the CPI?
Problems 69-72 require the following discussion. The consumer price index (CPI) indicates the relative change in price over time for a fixed basket of goods and services. It is a cost of living index that helps measure the effect of inflation on the cost of goods and services. The CPI uses the base period 1982-1984 for comparison (the CPI for this period is 100). The CPI for March 2015 was 236.12 . This means that $ 100 in the period 1982-1984 had the same purchasing power as $ 236.12 in March 2015. In general, if the rate of inflation averages r percent per annum over n years, then the CPI index after n years is C P I = C P I 0 ( 1 + r 100 ) n where C P I 0 is the CPI index at the beginning of the n -year period. Source: U.S. Bureau of Labor Statistics Consumer Price Index The base period for the CPI changed in 1998. Under the previous weight and item structure, the CPI for 1995 was 456.5 . If the average annual inflation rate was 5.57 % , what year was used as the base period for the CPI?
Solution Summary: The author explains the base period for the Consumer Price Index changed in 1998. Under the previous weight and item structure, the CPI for 1995 was 456.5
Problems 69-72 require the following discussion. The
consumer price index (CPI)
indicates the relative change in price over time for a fixed basket of goods and services. It is a cost of living index that helps measure the effect of inflation on the cost of goods and services. The CPI uses the base period 1982-1984 for comparison (the CPI for this period is 100). The CPI for March 2015 was
. This means that
in the period 1982-1984 had the same purchasing power as
in March 2015. In general, if the rate of inflation averages
percent per annum over
years, then the CPI index after
years is
where
is the CPI index at the beginning of the
period.
Source:
U.S. Bureau of Labor Statistics
Consumer Price Index
The base period for the CPI changed in 1998. Under the previous weight and item structure, the CPI for 1995 was
. If the average annual inflation rate was
, what year was used as the base period for the CPI?
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
$12,000 in 1999?
Year
CPI
1960
29.6
1973
44.4
109.6
156.9
1986
1999
2012
229.6
In 2012, a car would sell for approximately S
(Round to the nearest dollar.)
The average annual cost (tuition, fees, and room and board) at four-year private universities rose from $6,566 in 1980 to $29,188 in 2004. Calculate the percentage rise in cost from
1980 to 2004, and compare it to the overall rate of inflation as measured by the Consumer Price Index. The Consumer Price Index for 1980 is 85.4 and the Consumer Price index for
2004 is 188.6.
The percentage rise in cost from 1980 to 2004 is %.
(Round to the nearest tenth as needed.)
C
Suppose that a company has determined that a 70% experience curve accurately describes the evolution of its production costs for a new line. If the first unit costs $100 to produce, what should the 1,000th unit cost based on the experience curve?
Chapter 5 Solutions
Precalculus Enhanced with Graphing Utilities, Books a la Carte Edition Plus NEW MyLab Math -- Access Card Package (7th Edition)
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.
Linear Equation | Solving Linear Equations | What is Linear Equation in one variable ?; Author: Najam Academy;https://www.youtube.com/watch?v=tHm3X_Ta_iE;License: Standard YouTube License, CC-BY