Aplia: Student Question uiz?quiz action takeQuiz&quiz; probGuid-QNAPCOA801010000

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Aplia: Student Question uiz?quiz action takeQuiz&quiz; probGuid-QNAPCOA801010000003b167d30040000&ctx; susan.thomas-0008&ck; m1 HEALTHCOLLABUHC DATA ENRY BPM ADMIN D AETNA ADMIN . Paylocity SHAREPOINT O UHC REPLICA USER Attempts Keep the Highest: 17.2 1. Calculating Infiation using a simple price Index Aa Aa Consider a fictional price index, the College Student Price Index (CSPI), based on a survey of annual purchases of a typical college student Suppose the following table shows information on the market basket for the CSPI and the prices of each good in 2012, 2013, and 2014. 2012 2013 2014 Cost of Quantity in Basket Price Basket Price Basket Price Basket Cost of Cost of Notebooks Calculetors Large coffees Energy drinks L0 50 1 100 100110 140 150 100 150 50 10 100 1,000 120 150 Total cost $1,400 100 Price index The cost of each item in the basket and the total cost of the basket are shown for 2012. Perform these same calculations for 2013 and 2014, and enter the results in the table. Suppose the base year for this price index is 2012. Calculate and enter the value of the CSPI for the remaining years in the last row of the table. Between 2012 and 2013, the CSPl increased by Between 2013 and 2014, the CSPI increased by which of the following, if true, would Check all that apply ustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their smart phones or on their computers Professors required each student to buy 10 notebooks, regardess of the price. Energy drinks became increasingly popular on college campuses between 2012 and 2014 due to significant improvements in flavor

Explanation / Answer

CSPI for 2013 = (cost of basket at current price / cost of basket at base year price ) *100

CSPI for 2013 = (1680 /1400 ) *100 = 120

CSPI for 2014 = (2100 /1400) *100 =150

between 2012 and 2013, CSPI increase by 20 and between 2013 and 2014, CSPI increased by 30.

check all options.

price cost of basket price cost of basket 7 70 11 110 110 110 140 140 1 150 1 150 3 150 4 200 120 1200 150 1500 1680 2100

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