Table 5.2. Consumer Price Index market basket 5.6 Category Weight (%) 2006-2007 change (%) Food and beverages 15.009 4.0 Housing Apparel Transportation Medical care 44.377 3.0 3.697 -1.5 16.030 1.2...

your rate may vary.

a) suppose a student in 2007 estimated that her expenses were distributed among the CPI categories as listed in Table 5.6. (She had no housing expenses since she lived at home.) Calculate the inflation rate she would have experienced relative to the year before.

b) compare the answer in (a) to the northeast urban average of 2.58% and explain why the rate the student experienced was higher or lower.

Extracted text: Table 5.2. Consumer Price Index market basket 5.6 Category Weight (%) 2006-2007 change (%) Food and beverages 15.009 4.0 Housing Apparel Transportation Medical care 44.377 3.0 3.697 -1.5 16.030 1.2 5.780 4.8 Recreation 5.387 -0.4 Education and communication 6.455 2.7 Other goods and services 3.265 Hot 29 2.6 E3 All items 100 2.58


Extracted text: Weight (%) 2006–2007 change (%) Table 5.6. How one student spent her income Category Food and beverages 15 4.0 0. 3.0 Housing Apparel Transportation Medical care 15 -1.5 amu ulov 25 1.2 5 4.8 1.190.4 VASUIRITAS 2.7 M Recreation - Education and communication 15 Other goods and services 15 2.6 All items 100 olg