QuestionJune 1, 2025

The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index. Which of the following is not one of the steps taken to reduce the bias? A conducting a point-of-purchase survey to track where consumers actually make their purchases B updating the market basket every two years, rather than every 10 years C incorporating substitutions by consumers when prices of specific products rise rapidly D using statistical methods to reduce the size of the quality bias

The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index. Which of the following is not one of the steps taken to reduce the bias? A conducting a point-of-purchase survey to track where consumers actually make their purchases B updating the market basket every two years, rather than every 10 years C incorporating substitutions by consumers when prices of specific products rise rapidly D using statistical methods to reduce the size of the quality bias
The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index. Which of the following
is not one of the steps taken to reduce the bias?
A conducting a point-of-purchase survey to track where consumers actually make their purchases
B updating the market basket every two years, rather than every 10 years
C incorporating substitutions by consumers when prices of specific products rise rapidly
D using statistical methods to reduce the size of the quality bias

Solution
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Answer

B updating the market basket every two years, rather than every 10 years Explanation 1. Identify the steps taken to reduce bias The Bureau of Labor Statistics has implemented several measures to reduce bias in the consumer price index, including conducting surveys, updating market baskets more frequently, incorporating consumer substitutions, and using statistical methods. 2. Determine which option is not a step Option B, "updating the market basket every two years, rather than every 10 years," is not a step taken by the Bureau. Typically, the market basket is updated less frequently than every two years.

Explanation

1. Identify the steps taken to reduce bias<br /> The Bureau of Labor Statistics has implemented several measures to reduce bias in the consumer price index, including conducting surveys, updating market baskets more frequently, incorporating consumer substitutions, and using statistical methods.<br /><br />2. Determine which option is not a step<br /> Option B, "updating the market basket every two years, rather than every 10 years," is not a step taken by the Bureau. Typically, the market basket is updated less frequently than every two years.
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