Question: Inflation 2006. The Consumer Price Index (CPI) tracks the prices of consumer goods in the United States, as shown in the table on the next page (ftp://ftp.bis.gov). It indicates, for example, that the average item costing $17.70 in 1926 cost $201.60 in the year 2006.
a) Make a scatterplot showing the trend in consumer prices. Describe what you see.
b) Be an economic forecaster: Project increases in the cost of living over the next decade. Justify decisions you make in creating your model.