Having taken statistics, you know that a graph that shows how the cost of attending your school has increased since 1980 should show the cost in real terms. To do this, you will
A) report cost on the standard score scale (compute standard scores of costs).
B) use the CPI to adjust each year's cost for changes in the buying power of a dollar.
C) be sure to put cost on the horizontal axis of your graph.
D) be sure to put cost on the vertical axis of your graph.
E) use the median cost rather than the mean cost.

Question

Quizplus · Accepted Answer

Using the CPI (Consumer Price Index) to adjust each year's cost for changes in the buying power of a dollar is the best method for showing the cost in real terms over time. This will allow for accurate comparisons of the costs in different years, accounting for inflation and changes in the value of money. The other options are not relevant for adjusting for real terms, as they either focus on the scale of measurement (A) or the placement of the variable on the graph (C and D) or the measure of central tendency used (E).

Having Taken Statistics, You Know That a Graph That Shows