Question: please explain and show your calculation The consumer price index is a measure of the change in the cost of goods over time. the index

please explain and show your calculation

The consumer price index is a measure of the change in the cost of goods over time. the index was 100 for the three-year period centered on 1983. For simplicity, we will assume that the CPI was exactly 100 in 1983. Then the CPI of 229.6 in 2012 indicates that an item that cost $1.00 in 1983 would cost $2.30 in 2012. The CPI has been increasing approximately linearly over the last few decades.

Use this information to determine an equation for the CPI in terms of , that represent the years since 1980.

Based on the answer to part (a), what was the predicted value of the CPI in 2000? Compare this estimate with the actual CPI of 172.2.

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