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seraphim [82]
3 years ago
13

Which of the following is not considered one of the potential biases in calculating the consumer price​ index? A. New product bi

as. B. Increase in quality bias. C. Coverage bias. D. Outlet bias. E. Substitution bias.
Business
1 answer:
Romashka [77]3 years ago
5 0

Coverage bias is not considered one of the potential biases in calculating the consumer price​ index.

<h3><u>Explanation:</u></h3>

A price index refers to the weighted average in the prices of certain goods or services in certain region at certain time. In the consumer price index calculation, the biases arises from four different sources in which coverage bias  is the major one. There are two price indices such as producer and consumer price index.

In the calculation of the consumer price​ index the potential bias which is a coverage bias can be reduced with BLS. The BLS has collected price information form extended stores number in order to reduce the coverage bias.

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A) he fails to identify the correct problem

B) he fails to assign number values to different criteria

C) he solves the problem inefficiently

D) he fails to correctly identify the steps of the process

<u>Answer</u>:

A. He fails to identify the correct problem.

<u>Explanation</u>:

for option b, Assigning number values to decision criteria could be of help in the decision-making process, but it is not what is required for a successful outcome.

for option c, Solving the problem inefficiently is not ideal, but even at that, it is not without value.

for option d, Identifying the steps of the process has nothing much to do with how successful the process will be.

<em><u>This leaves us with option A as the correct answer. it is of no good to solve a problem especially if the problem being solves is the wrong one. Solving a wrong problem is of no good to the organization.</u></em>

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goldfiish [28.3K]
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chubhunter [2.5K]

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Explanation:

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