When 1983 is the CPI base year, the CPI value is 82.4 for 1980 and 172.2 for 2017. Suppose we want to convert this CPI series to have a base year of 2017 (that is, CPI₂₀₁₇ = 100). What is the value of the revised CPI for 1980? A) 172.2 B) 100 C) 47.9 D) 209.0

Question

Quizplus · Accepted Answer

To convert the CPI series to have a base year of 2017, we need to use the formula:
CPIS1U1B12017S1U1B0 = (CPIS1U1B1tS1U1B0 / CPIS1U1B1tS1U1B12017) × 100
where t is the year for which we want to calculate the new CPI. Substituting the given values, we get:
100 = (CPIS1U1B11980S1U1B0 / 172.2) × 100
Solving for CPIS1U1B11980S1U1B0, we get:
CPIS1U1B11980S1U1B0 = 47.9
Therefore, the value of the revised CPI for 1980 is 47.9.

When 1983 Is the CPI Base Year, the CPI Value