Question about cpi calculation

Assignment Help Econometrics
Reference no: EM1376289

Assume that the price index is one hundred and a typical basket of goods and services cost $8. Within the basket, you had four hamburgers and 3 hot dogs. In 2001 the basket cost $100.00, 2002 the basket costs $175.00, 2003 the basket costs $250.00.

Name 4 weaknesses and 4 strengths in the CPI calculation. In addition, if the CPI is imperfect, why do we use it? Is the CPI calculation effective?

 

Reference no: EM1376289

Questions Cloud

Question about underground economy : Determine the economic activity that takes place in Underground Economy have any impact upon any Economic Indicator.
Discuss the current us federal budget : Discuss the current United States Federal Budget and what are the major categories of expenditures? What has changed since 2005? Explain your reasoning.
Economic advantages for the us speaker company boss : Determine the economic advantages or disadvantages, for the United States speaker company Bose, to start a distribution center in the Czech Republic?
Explanation of forecasting : Discuss forecasting and explain why is it so important in the management of business firms and other enterprises also determine the different types of forecasting?
Question about cpi calculation : Assume that the price index is one hundred and a typical basket of goods and services cost $8. Within the basket, you had four hamburgers and 3 hot dogs.
New deal finance speculation and turbulence : The United States was devastated through the Crash of 1929 and the following depression. What policies were enacted during the New Deal contain finance speculation and turbulence?
Multiple choice - economics and management review : Determine when the exponents of a Cobb-Douglas production function sum to more than one, the function exhibits
Explanation of yield curve : The following statement was released through FOMC following recent meeting on March 21. The Group, although hopeful for a future of moderate growth with moderating inflation,
Example on precision tree - basic tree terminology : The Westhouser Paper Company in the state of Washington currently has an option to purchase a piece of land with good timber forest on it. Example on precision tree - Basic Tree Terminology

Reviews

Write a Review

Econometrics Questions & Answers

  Estimation of the mean and the standard deviation

The price earnings ratio for each stock is determined through dividing the value of a share of stock by the earnings per share reported by the firm for the most recent 4-quarters.

  Gross domestic product effect on computer hardware industry

Make an in depth analysis on how your prediction of indicators Gross Domestic Product, Producer Price Index and Retail Sales or PC Retail Sales will effect the Dynamic Random Access Memory industry.

  Computing autonomous aggregate demand and short run output

Answer the following questions using the above data. Compute autonomous aggregate demand and compute the short-run output.

  Explanation of yield curve

The following statement was released through FOMC following recent meeting on March 21. The Group, although hopeful for a future of moderate growth with moderating inflation,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Determine how many workers company should hire

The local operations manager for IRS must decide whether to employee 1, 2, or 3 temporary employees. He determine that net revenues will vary with how well taxpayers comply with new tax code.

  Discussion on kohls

Select three macroeconomic indicators that you feel have greatest impact on operations or considering for Kohls. Discuss and describe why they are important to current or future situation of your organization.

  Determining greatest present value

Suppose that you have just been employed as a consultant to help a company decide which of 3-options to take to maximize the value of the company over the next three years.

  Determine the probability

Scores of high school students on a national mathematics exam in Egypt were normally distributed with a mean of 86 and a standard deviation of 4.

  Determine the concentration ratio in the industry

There are six companies in the industry. Assume their sales in the year 2006 are as follows, Determine the concentration ratio in the industry

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

  Find the mean and standard deviation of the return

An analysis of stock market manufactures the following data about the returns of two stocks.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd