If Bureau of Labor Statistics data collectors find that the model of car they priced the previous month is no longer available on the market,they
A)just drop that product from the calculation of the CPI
B)ask the manufacturer to choose another of its models for the CPI calculation
C)must look for an available model with very similar features
D)keep entering the price of the car from the last month it was available
E)None of the answers is correct

Question

Quizplus · Accepted Answer

To maintain the consistency and accuracy of the CPI, the data collectors must look for an available model with very similar features if the previously priced model is no longer available on the market. This ensures that the replacement product reflects the same quality and characteristics as the original product for which the price was calculated. A and D are incorrect because dropping or keeping the price of an unavailable product would distort the calculation of the CPI. B is also not a viable option because it may introduce bias in favor of the manufacturer's chosen model.

If Bureau of Labor Statistics Data Collectors Find That the Model