Question

Check my work Problem 06-10 (algo) The Bureau of Labor Statistics has found that the base-year expenditures of the typical consumer break down as follows: Food and beverages Housing Apparel and upkeep Transportation Medical care Entertainment Other goods, and services Total 17.88 42.88 6.30 17.28 5.78 5.88 100.00 Suppose that since the base year, the prices of food and beverages have increased by 10 percent, the price of housing has increased by 4 percent, and the price of medical care has increased by 5 percent. Other prices are unchanged. Instructions: Enter your responses by rounding the CPI to three decimal places. The CPI for the current year is 3.777

Answer 1

Answer
Explanation :
Product Type	Base year price	Current year price
Food and beverages	17.8	19.58
Housing	42.8	44.512
Apparel and upkeep	6.3	6.3
Transportation	17.2	17.2
Medical care	5.7	5.985
Entertainment	4.4	4.4
Other goods, and services	5.8	5.8
Total	100	103.777
Therefore, The CPI for the current year is 3.777