Consumer Price Index CPI is a measure of the change in the cost of goods over time The index was 100 for the three year period

Question

Consumer Price Index CPI is a measure of the change in the cost of goods over time The index was 100 for the three year period centered on 1983 For simplicity we will assume that the was exactly 100 in 1982 Then the CPI of 210 4 in 2006 indicates that an item that cost 1 00 in 1982 would cost 2 10 in 2006 The CPI has been increasing approximately linearly over the las decades a Use this information to determine an equation for the CPI in terms of t which represents the years since 1982 b Based on the answer to part a what was the predicted value of the CPI in 2000 Compare this estimate with the actual CPI of 181 7 c Describe the rate at which the annual CPI is changing a y t Round to the nearest tenth as needed b The predicted value of the CPI in 2000 was The estimated CPI is Round to the nearest tenth as needed c The CPI is increasing at the rate of per year Round to the nearest tenth as needed the actual CPI

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