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The Consumer Price Index (CPI), which measures the cost of a typical package of consumer goods, was 220.6 in 2011 and 236.4 in 2016. Let
The Consumer Price Index (CPI), which measures the cost of a typical package of consumer goods, was
220.6
in 2011 and
236.4
in 2016. Let
x=11
correspond to the year 2011 and estimate the CPI in
2012
and
2015.
Assume that the data can be modeled by a straight line and that the trend continues indefinitely. Use two data points to find such a line and then estimate the requested quantities.
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Part 1
Let y represent the CPI. The linear equation that best models the CPI is
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