2. Related to Chapter 4. Use the hypothetical date in Table III to
     respond to the questions that follow.
                                Table III:  Relative Importance in the 
                                                   Basket of Goods and Services, 1995-2000.

CATEGORY | Q_O | Po | P_1 | PoQo | P1Qo
Food | 16 | 50 | 50 | |
Clothing | 5 | 10 | 15 | |
Housing | 40 | 10 | 20 | |
Transportation | 17 | 10 | 10 | |
Medical | 6 | 5 | 10 | |
Education/Communication | 5 | 10 | 15 | |
Recreation | 6 | 10 | 15 | |
Other | 5 | 10 | 15 | |
Total | 100 | | | |

a. Calculate the CPI using the formula

				• Pi  Qo	
			CPI = ________   X  100  =
				• Po Qo 

b. Interpret/explain the meaning of this numerical value of the CPI.  Be specific.