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Oksana_A [137]
3 years ago
9

Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices

that the price of ginger ale has increased 15 percent, so she decides to buy some peppermint tea instead. To which problem in the construction of the CPI is this situation most relevant?
Business
1 answer:
Vlad1618 [11]3 years ago
6 0

Answer:

SUBSTITUTION BIAS

Explanation:

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

The substitution bias is a weakness in the Consumer Price Index that overstates inflation because it does not account for the substitution effect, when consumers choose to substitute one good for another after its price becomes cheaper than the good they normally buy.

Samantha decides to buy some peppermint because of the 15% inflation on the price of ginger ale, therefore, this situation is most relevant to SUBSTITUTION BIAS in the construction of CPI.

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Why is education considered as foundation of any proffession.
olchik [2.2K]

Answer:

because you need to know certain things to be able to understand and properly do a job

Explanation:

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Sarkis is a sales manager for the bratney companies, a company that manufactures equipment used in the processing of grains and
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The decision is made under the condition of Uncertainty, Because T<span>he goal is clear, but there is no clear solution to the problem
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Magnet Dot, a printer manufacturing company, set up a website to enable its customers to place orders online. It also set up an
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Answer:

communication costs

Explanation:

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3 0
3 years ago
A statistic is said to be unbiased if:
neonofarm [45]
B. The mean of its sampling distribution is equal to the true value of the parameter being estimated
5 0
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An employee earned $4,600 in February working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,4
Aneli [31]

Answer:

Net Pay $3094.10 is the answer.

Explanation:

Gross pay $4600

Less: Social Security (4600*6.2%) 285.20

Less: FICA (4600*1.45%) 66.70

Less: Federal tax withheld 644

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Net Pay $3094.10

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