The CPI for "personal computers and peripheral equipment" in July of 2001 was 29.3 (1982-1984 = 100). Interpret this index.
A) There was no significant increase in the price of "personal computers and peripheral equipment"
B) The price of "personal computers and peripheral equipment" increased 29.3%.
C) The price of "personal computers and peripheral equipment" decreased 70.7%.
D) If the average price of a computer in 1982-1984 was $879.00, the CPI for "personal computers and peripheral equipment" would predict that the price of a computer in July 2001 would be $3,000.00.
E) The price of "personal computers and peripheral equipment" decreased 29.3%.

Question

Quizplus · Accepted Answer

The CPI for "personal computers and peripheral equipment" in July of 2001 was 29.3 (1982-1984 = 100). This means that the price of "personal computers and peripheral equipment" in July of 2001 was 29.3 times higher than the price of "personal computers and peripheral equipment" in 1982-1984. If the average price of a computer in 1982-1984 was $879.00, then the CPI for "personal computers and peripheral equipment" would predict that the price of a computer in July 2001 would be $879.00 x 29.3 = $3,000.00.

The CPI for "Personal Computers and Peripheral Equipment" in July