Concept explainers
Problems 69 – 72 require the following discussion. The consumer price index(CPI) indicates the relative change in the 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 1982-84 for comparison (the CPI for this period is 100). The CPI for March 2017 was $243.80. This means that $100 in the period 1982-84 has the same purchasing power as $243.80 in March 2017. In general, if the rate of inflation averages r percent per annum over n years, then CPI index after n years is
Where, CPI0 is the CPI index at the beginning of the n-year period
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?
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
Precalculus: Concepts Through Functions, A Unit Circle Approach to Trigonometry (4th Edition)
- Table 3.5 provides the number of deaths from all causes and from accidents (unintentional injuries) by age group in the United States in 2002. Review the following rates. Determine what to call each one, then calculate it using the data provided in Table. 1. Unintentional-injury-specific mortality rate for the entire population. Calculate cause-specific mortality rate. 2. All-cause mortality rate for 25–34 years old. Calculate the age-specific mortality rate. 3. All-cause mortality among males. Calculate the sex-specific mortality rate. 4.Unintentional-injury specific mortality among 25 to 34 years old males. Calculate the is a cause-specific, age-specific, and sex-specific mortality ratearrow_forwardIn 2010, MonsterCollege surveyed 1250 U.S.college students expecting to graduate in the next several years.Respondents were asked the following question:What do you think your starting salary will be at your firstjob after college?The line graph shows the percentage of college students whoanticipated various starting salaries. Use the graph to solveExercises 9–14. What starting salary was anticipated by the greatestpercentage of college students? Estimate the percentage ofstudents who anticipated this salary? What starting salary was anticipated by the least percentageof college students? Estimate the percentage of students whoanticipated this salary? What starting salaries were anticipated by more than 20% ofcollege students? Estimate the percentage of students who anticipated astarting salary of $40 thousand.arrow_forwardThe Internal Revenue Service Restructuring and Reform Act (RRA) was signed into law by President Bill Clinton in 1998. A major objective of the RRA was to promote electronic filing of tax returns. The data in the table that follows show the percentage of individual income tax returns filed electronically for filing years 2000–2008. Since the percentage P of returns filed electronically depends on the filing year y and each input corresponds to exactly one output, the percentage of returns filed electronically is a function of the filing year;so P(y) represents the percentage of returns filed electronically for filing year y. (a) Find the average rate of change of the percentage of e-filed returns from 2000 to 2002. (b) Find the average rate of change of the percentage of e-filed returns from 2004 to 2006. (c) Find the average rate of change of the percentage of e-filed returns from 2006 to 2008. (d) What is happening to the average rate of change as time passes?arrow_forward
- If a quarterly seasonal index is 1.16, it implies that a. the quarter's sales are 1.6% of the yearly average b. the quarter's sales are 16% above the yearly average c. he other three quarterly percentages will total 84% d. the quarter's sales are 16% of yearly total salesarrow_forwardJohn Kittle, an independent insurance agent, uses a five-year moving average to forecast the number of claims made in a single year for one of the large insurance companies he sells for. He has just discovered that a clerk in his employ incorrectly entered the number of claims made four years ago as 1,400 when it should have been 1,200.a. What adjustment should Mr. Kittle make in next year’s forecast to take into account the corrected value of the number of claims four years ago?b. Suppose that Mr. Kittle used simple exponential smoothing with a = .2instead of moving averages to determine his forecast. What adjustment is now required in next year’s forecast? (Note that you do not need to know the value of the forecast for next year in order to solve this problem.)arrow_forwardIn the last three years, there have been changes of 55%, 3% and 2% in the production amount of a good, respectively. What is the geometric mean of the annual rate of change?arrow_forward
- Use the most accurate method to forecast the revenues of licenses, permits, and fees in Years 9, 10, and 11. Use the Year 8 actual figure instead of the forecast figure (Year 8 was $23,210,218). Also, consider three incremental changes in forecasting.arrow_forwardQ1. The table provided gives data on indexes of output per hour (X) and real compensation per hour (Y) for the business and nonfarm business sectors of the U.S. economy for 1960–2005. The base year of the indexes is 1992 = 100 and the indexes are seasonally adjusted. a. Plot Y against X for the two sectors separately. b. What is the economic theory behind the relationship between the two variables? Does the scattergram support the theory? c. Estimate the OLS regression of Y on X. Note: on the table ( 1. Output refers to real gross domestic product in the sector. 2. Wages and salaries of employees plus employers’ contributions for social insurance and private benefit plans. 3. Hourly compensation divided by the consumer price index for all urban consumers for recent quarters.) Thank you!arrow_forwardc. Predict sales in 15 years.arrow_forward
- 5. 2) A country's mid-year total population is 30,000,000. Over the course of the year, there are 220,000 births, and 150,000 deaths. What is its rate of natural increase for the year?arrow_forwardA. discuss the time period(s) when the sales trend is increasing, B. and when it is decreasing. C. Also indicate any periods where the trend stayed constant (that is, it did not change).arrow_forwardThe sales of a company rose to Rs. 120,000 in the month of January to Rs. 130,000 in the month of February while the seasonal indices for these two months were : 120 and 150 respectively. Was such an increment in sales satisfactory ? If not, what should have been the sale in the month of February to keep pace with the seasonal index.arrow_forward
- Calculus: Early TranscendentalsCalculusISBN:9781285741550Author:James StewartPublisher:Cengage LearningThomas' Calculus (14th Edition)CalculusISBN:9780134438986Author:Joel R. Hass, Christopher E. Heil, Maurice D. WeirPublisher:PEARSONCalculus: Early Transcendentals (3rd Edition)CalculusISBN:9780134763644Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric SchulzPublisher:PEARSON
- Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. FreemanCalculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning