The Consumer Price Index is reported monthly by the U.S. Bureau of Labor Statistics. It reports the change in prices for a market basket of goods from one period to another. The index for 2000 was 220.9. By 2014, it increased to 262.500. What was the geometric mean annual increase for the period?
+36916 It increased 14 years from 2000 - 01 01-02 02-03 and 03-04 etc ...
220.9 (r)^n = 262.5
r^14 = 262.5/220.9
r^14 = 1.188320507 solve for r
EP: You made a little typo.
262.50 / 220.9 =1.1883205^(1 / 14) =1.012400 - 1 x 100 = 1.24 % per year.
+36916 You are correct.....I used 2004 instead of 2014 yikes ! Thanx...I fixed it !
