Solve the problem The CPI is a measure of the change in the

Solve the problem.

The CPI is a measure of the change in the cost of goods over time. If 1982 is used as the base year of comparison (CPI = 100 in 1982), then the CPI of 215.2 in 2010 would indicate that an item that cost $1.00 in 1982 would cost $2.15 in 2010. The CPI has been increasing at an approximately linear rate for the past 30 years. Use this information to determine a linear function for this data, letting x be the years since 1982.

Based on your function, what was the CPI in 1990?

Solution

CPI is satisfing linear ==> eqn for cpi with x be years from 1862 is CPI = 4.114(x) + 100 hence at 1990 no of years x = 8 so CPI is 132.9