The Consumer Price Index (CPI) is a measure of inflation obtained by comparing current prices with base prices in 1982–84. We can find the inflation rate for a given time period by calculating the percent of change in the CPI over that time period. For example, the CPI in 2005 was 195.3 and in 2009 it was 214.5, so the inflation rate was 214.5 − 195.3 195.3 ≈ 0.098 = 9.8 % . Use the given graph to do Exercises 47–50. Your answers may vary slightly due to rounding. Effect of inflation on the cost of cars. a. Calculate the inflation rate from 1990 to 2010. b. If a car cost $17,000 in 2010, use the inflation rate from part (a) to estimate what the car would have cost in 1990.
The Consumer Price Index (CPI) is a measure of inflation obtained by comparing current prices with base prices in 1982–84. We can find the inflation rate for a given time period by calculating the percent of change in the CPI over that time period. For example, the CPI in 2005 was 195.3 and in 2009 it was 214.5, so the inflation rate was 214.5 − 195.3 195.3 ≈ 0.098 = 9.8 % . Use the given graph to do Exercises 47–50. Your answers may vary slightly due to rounding. Effect of inflation on the cost of cars. a. Calculate the inflation rate from 1990 to 2010. b. If a car cost $17,000 in 2010, use the inflation rate from part (a) to estimate what the car would have cost in 1990.
Solution Summary: The author calculates the inflation rate for a given time period by calculating the percent of change in CPI.
The Consumer Price Index (CPI) is a measure of inflation obtained by comparing current prices with base prices in 1982–84. We can find the inflation rate for a given time period by calculating the percent of change in the CPI over that time period. For example, the CPI in 2005 was 195.3 and in 2009 it was 214.5, so the inflation rate was
214.5
−
195.3
195.3
≈
0.098
=
9.8
%
. Use the given graph to do Exercises 47–50. Your answers may vary slightly due to rounding.
Effect of inflation on the cost of cars.
a. Calculate the inflation rate from 1990 to 2010.
b. If a car cost $17,000 in 2010, use the inflation rate from part (a) to estimate what the car would have cost in 1990.
During busy political seasons, many opinion polls are conducted. In apresidential race, how do you think the participants in polls are generally selected?Discuss any issues regarding simple random, stratified, systematic, cluster, andconvenience sampling in these polls. What about other types of polls, besides political?
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