https://file.aiquickdraw.com/mathbot/file/1726823836927vocufpmd.jpg

I can help interpret the table and answer the related questions.

From the image, I see a table comparing CPI to average price for different items from Jan 2010 to Apr 2020. It includes the following columns:

1. **Item Average** – Items being compared.
2. **Jan 2010 Avg. Price** – Prices in 2010.
3. **Apr 2020 Avg. Price** – Prices in 2020.
4. **Price Growth Factor** – The factor showing the growth of the price between 2010 and 2020.
5. **Price Change %** – Percentage change in the price over the years.
6. **CPI Estimated Value** – Estimated Consumer Price Index (CPI) value for each item.
7. **CPI Growth Factor** – Growth factor from CPI.
8. **CPI Change %** – Percentage change in the CPI.

Now, let's address the questions:

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**8) For which item was the CPI estimated value the closest?**

The closest estimated CPI value can be found by comparing the **Price Growth Factor** and **CPI Growth Factor** for each item. The CPI value for **Unleaded gasoline** has a **CPI Growth Factor** of 3.22 and a **Price Growth Factor** of 0.687, which are relatively close. Despite the fact that the CPI is larger, this seems to be the item where the two values are closest in scale.

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**9) For which item was the CPI estimated value the furthest? Why?**

The largest discrepancy appears for the **National Weekly Average Salary** where the **Price Growth Factor** is 1.352 while the **CPI Growth Factor** is 46.4. This shows a major difference, as the price increase is much smaller compared to the increase in the CPI.

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**10) Do you think the CPI can be used as a predictor of prices? Why or why not?**

Based on the data, the CPI cannot always be used as an accurate predictor of prices. The price growth and CPI growth do not align well for many items, especially for gasoline and wages. The CPI may capture overall inflation but does not always reflect specific price changes for individual items, which are influenced by other factors.

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Would you like more details on these explanations? Here are some related questions to consider:

1. How is the CPI calculated, and what factors influence its changes?
2. What are some reasons for large discrepancies between CPI growth and price changes?
3. How could wages be influenced by factors other than CPI?
4. Why might gasoline prices differ significantly from CPI predictions?
5. How could the analysis change with data beyond 2020?

**Tip:** When analyzing inflation or CPI, it's essential to look at the broader economic context, as many factors beyond the overall CPI can influence the prices of specific goods and services.

Use the table to answer questions 8, 9, and 10 about comparing CPI to average prices for various items from 2010 to 2020.

Learn how to compare CPI values to average prices for items like gasoline, coffee, eggs, and wages between 2010 and 2020. This lesson covers key concepts like price growth factor, percentage change, and how to use CPI to predict future prices.

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