Which of the Following Answers Would Accurately Describe the Bias

Multiple Choice

Which of the following answers would accurately describe the bias in the CPI resulting from the fact that oil prices suddenly increase?

A) The CPI would underestimate the cost of living.
B) The CPI would overestimate the cost of living.
C) The CPI would not be biased as a result of a sudden rise in oil prices.
D) The CPI could overestimate or underestimate the cost of living, depending upon the quantity of oil purchased in that year.