CPI; 2010 q7 hsc past paper (1 Viewer)

[school4nerds]

can someone explain this to me? how do you get d) as the answer??????

 

[Washy_182]

I got my teacher to try and work this one and he had trouble, so I was left not knowing...

 

[Jashua_Long]

It's a weighted average, sort of out of the course.

Note: since the base is taken as 100, the inflation rates are calculated as just (x/100) -1 [ just a percentage change ]

Food: Inflation = 110/100 - 1 = 10%

Similarly

Health =30%
Housing = 25%
Clothing = 20%

Multiplying the weights by the inflation rates (everything is always multiplied in decimal form);

Food = 0.3 * 0.1= 0.03
Health = 0.1 * 0.3 = 0.03
Housing = 0.15 * 0.25 = 0.0375
Clothing = 0.2 * 0.2 = 0.04


Pick the one with the largest number.

 

[thorax94]

Hi, here is what you do

The second column shows CPI and as you know CPI measures the change in prices over a given year.

To find the inflation from that you take the current minus the previous and divide it by the previous.

In this instance, you find that the base year is 100.

E.g For food you take (110-100)/100 to find inflation. Then you multiply it by the weighting.

E.g for food it is 10% x 30 = 3. Do that for the rest of them and you will get your answer. Good luck tomorrow.

 

[Washy_182]

Hi, here is what you do

The second column shows CPI and as you know CPI measures the change in prices over a given year.

To find the inflation from that you take the current minus the previous and divide it by the previous.

In this instance, you find that the base year is 100.

E.g For food you take (110-100)/100 to find inflation. Then you multiply it by the weighting.

E.g for food it is 10% x 30 = 3. Do that for the rest of them and you will get your answer. Good luck tomorrow.

Awesome!!!

 

[thorax94]

I got my teacher to try and work this one and he had trouble, so I was left not knowing...

The same thing happened to me. My teacher actually had no idea either. Though being ever so resourceful she emailed Tim Riley and got the answer for me.

 

[school4nerds]

thanks thorax and joshua!!