The Consumer Price Index (CPI) measures the average prices of goods : Graphs and Tables (G&T)

L

Sajjad1994

GRE Forum Moderator

Joined: 02 Nov 2016

Posts: 14022

Own Kudos [?]: 33710 [0]

Given Kudos: 5787

GPA: 3.62

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

06 Apr 2021, 02:08

Expert Reply

Official Explanation

1. For each of the following, select Yes if the statement is inferable from the given information. Otherwise select No.

In the table, the absolute values of the numbers in the "Seasonally adjusted changes from preceding month" columns represent the magnitudes of seasonally adjusted changes. In each of the seven columns representing the months from March 2010 through September 2010, the absolute value of the number in the "Used cars and trucks" row exceeds that of the number in the "New vehicles" row. Thus, in every month shown during this period, the magnitude of the change in seasonally adjusted prices for used cars and trucks is greater, not less, than that of the change in seasonally adjusted prices for new vehicles.

The correct answer is No.

The number at the intersection of the "Mar 2010" column and the "All items" row is 0.1. As the table title and the multicolumn header indicate, this means the seasonally adjusted CPI-U for all items collectively was 0.1% higher in March 2010 than it was in the preceding month.

The correct answer is Yes.

The only seasonally unadjusted changes in prices shown in the table are those in the final column, which are for the whole 12-month period ending September 2010. The table contains no information about seasonally unadjusted changes in prices between any specific month and the preceding month.

The correct answer is No.

P

jabhatta2

VP

Joined: 15 Dec 2016

Posts: 1367

Own Kudos [?]: 209 [0]

Given Kudos: 189

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

15 May 2021, 11:01

VeritasKarishma - focussing on the question stem specifically

Quote:

1. For each of the following, select Yes if the statement is inferable from the given information. Otherwise select No.

Yes.................	No...................
		The changes in seasonally adjusted prices for used cars and trucks between March 2010 and September 2010 were in most cases less in magnitude than the changes in seasonally adjusted prices of new vehicles for the same period.
		The seasonally adjusted CPI-U for all items was higher in March 2010 than in the previous month.
		The seasonally unadjusted change in the price of new vehicles in August 2010 over the previous month was about the same as the seasonally unadjusted change in the price of food away from home over the same period.

What is the accurate re-wording of the blue above in your view ? Is it

Rewording attempt I) "Is the statement true or false" ? Select "Yes" if true or select "No" if false.
OR
Rewording attempt II) "Is the information given in the table sufficient to answer the question" ?

If it is rewording attempt # 1 then the OA solution to the 3rd question doesnt make sense in my view.

The solution given to the 3rd question is "NO", not because statement 3 is "FALSE" but because data from the table is just not available to confirm if the 3rd statement is True OR false to begin with

What are your thoughts

L

KarishmaB

Tutor

Joined: 16 Oct 2010

Posts: 14894

Own Kudos [?]: 65288 [0]

Given Kudos: 431

Location: Pune, India

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

17 May 2021, 23:32

Expert Reply

jabhatta2 wrote:

VeritasKarishma - focussing on the question stem specifically

Quote:

1. For each of the following, select Yes if the statement is inferable from the given information. Otherwise select No.

Yes.................	No...................
		The changes in seasonally adjusted prices for used cars and trucks between March 2010 and September 2010 were in most cases less in magnitude than the changes in seasonally adjusted prices of new vehicles for the same period.
		The seasonally adjusted CPI-U for all items was higher in March 2010 than in the previous month.
		The seasonally unadjusted change in the price of new vehicles in August 2010 over the previous month was about the same as the seasonally unadjusted change in the price of food away from home over the same period.

What is the accurate re-wording of the blue above in your view ? Is it

Rewording attempt I) "Is the statement true or false" ? Select "Yes" if true or select "No" if false.
OR
Rewording attempt II) "Is the information given in the table sufficient to answer the question" ?

If it is rewording attempt # 1 then the OA solution to the 3rd question doesnt make sense in my view.

The solution given to the 3rd question is "NO", not because statement 3 is "FALSE" but because data from the table is just not available to confirm if the 3rd statement is True OR false to begin with

What are your thoughts

"Inferable" means "Can I say that it is true?"

So to know whether you can infer a statement, select "Yes" if you can say that it is true and select "No" if it is not true or you don't know enough.

NikLexx

Intern

Joined: 18 May 2021

Posts: 5

Own Kudos [?]: 1 [0]

Given Kudos: 0

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

18 May 2021, 01:26

abhimahna wrote:

tanubarsainyan wrote:

Can some one please explin part 1

If you see the seasonal adjusted changes for All items from March to Sept, you will find sometimes it is +ve (implies it is increasing ) and sometimes it is -ve(implies it is decreasing. While if you see the same for All Items less food and Energy, you will find out of 7 months given , 4 have value 0 and the other three have very small change in the value, thus, it is true that there is greater Month to Month variability in the former than the latter. Hence, TRUE.

Very concise and clear explanation. Thank you

B

kienbn932

Intern

Joined: 11 Nov 2021

Posts: 14

Own Kudos [?]: 2 [0]

Given Kudos: 3

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

28 May 2022, 04:53

stormbind wrote:

I find this question to be especially annoying because of part 2:

2. The seasonally adjusted CPI-U for all items is higher in March 2010 than it is in the preceding month.

In the question, all items means "average", rather than "each of the items". This is clarified only by the existence of a separate table row with the name "All Items".

You need to stop and check every detail of the table to infer the meaning of all items, and I feel there is not enough time in the exam to do that.

Yes this is so pathetic of them to make us feel bad about ourselves

B

gmattakeer749404

Intern

Joined: 17 May 2021

Posts: 11

Own Kudos [?]: 1 [0]

Given Kudos: 45

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

28 Feb 2023, 18:50

So confused about Statement 1 of Part 1. If something is inferable, it should mean whether or not the information is sufficient (like the DS questions). We know statement 1 is false, therefore it is inferable, so the answer should be yes. I'm so confused by this wording, can someone explain the definition?

B

Ahanasarkar99

Intern

Joined: 09 Apr 2022

Posts: 7

Own Kudos [?]: 7 [0]

Given Kudos: 12

Location: India

GPA: 3.9

WE:Design (Computer Software)

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

22 Jun 2023, 22:11

chris93 wrote:

Project IR Butler 2019-20 - Get one IR Question Everyday
Question # 176, Date : 26-Mar-2020
This post is a part of Project IR Butler 2019-20. Click here for Details

The Consumer Price Index (CPI) measures the average prices of goods and services purchased by consumers. In the United States, the CPI-U calculates the CPI for all urban consumers.

The CPI-U Is calculated based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctors' and dentists' services, drugs, and other goods and services that people buy for day-to-day living. All taxes directly associated with the purchase and use of items (such as, In the United States, sales taxes) are included in the index. An increase In CPI-U by a certain fractional amount means an increase by that fractional amount in overall prices within the relevant category.

For analyzing general price trends in the economy, seasonally adjusted prices are usually preferred over unadjusted prices because adjusting eliminates the effect of changes that normally occur at the same time and in about the same magnitude every year—such as price movements resulting from climatic conditions, production cycles, model changeovers, and holidays.

Attachment:

55.jpg

1. For each of the following, select Yes if the statement is inferable from the given information. Otherwise select No.

Yes.................	No...................
		The changes in seasonally adjusted prices for used cars and trucks between March 2010 and September 2010 were in most cases less in magnitude than the changes in seasonally adjusted prices of new vehicles for the same period.
		The seasonally adjusted CPI-U for all items was higher in March 2010 than in the previous month.
		The seasonally unadjusted change in the price of new vehicles in August 2010 over the previous month was about the same as the seasonally unadjusted change in the price of food away from home over the same period.

Show SpoilerOA

No, Yes and No

2. For each of the following, select Yes if the statement is inferable from the given information. Otherwise select No.

Yes.................	No.................
		From March 2010 to September 2010, there was greater month-to-month variability in the All items category than in the All items less food and energy category.
		The CPI-U for electricity increased 0.5% from July to August 2010.
		There was no change in the CPI-U for all items less food and energy from May 2010 to September 2010.

Show Spoiler

Yes, No and No

Doesn't "The seasonally adjusted CPI-U for all items was higher in March 2010 than in the previous month." mean, previous month = Feb 2010 for All items which is not mentioned in the table and hence the answer should be No. Please explain me.

B

aryan0406

Intern

Joined: 30 Mar 2021

Posts: 3

Own Kudos [?]: 1 [0]

Given Kudos: 3

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

05 Dec 2023, 03:05

Hey guyz,
Statement 1 says: From March 2010 to September 2010, there was greater month-to-month variability in the "All items" category than in the "All items less food and energy" category.
If we calculate the variability from month to month then for "all items" category it will be: 0.2, 0.1, 0.1, 0.4, 0, 0.2 and for "All items less food and energy" category values are 0, 0.1, 0.1, 0.1, 0.1, 0. Now comparing both of these we can see that 3 among 6 are more in category "all items" and 2 are same and 1 is more in "All items less food and energy" category. So shouldn't the answer be NO because for all the months "all items" category does not have more value and it is nowhere mentioned in the statement that we are looking for the sum of all variability. It just says month-to-month variability which suggests that for each month we have to see.

D

Elite097

Director

Joined: 20 Apr 2022

Posts: 625

Own Kudos [?]: 255 [0]

Given Kudos: 319

Location: India

Schools: Sloan '25 CBS Berkeley Haas

GPA: 3.64

Send PM

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

23 Feb 2024, 09:15

ChiranjeevSingh KarishmaB can you please give explanation for all three parts in the posted version of this question

gmatclubot

Re: The Consumer Price Index (CPI) measures the average prices of goods [#permalink]

23 Feb 2024, 09:15

GMAT Graphs and Tables (G&T) Questions

The Consumer Price Index (CPI) measures the average prices of goods