(Solved): 6. Statistics in the Real World a) Explain the hedonic (hedonix) adjustment for inflation data; wha ...

6. Statistics in the Real World a) Explain the hedonic (hedonix) adjustment for inflation data; what does it take into consideration that other measures do not? b) Why are 'trimmed mean CPI and median CPI used by some regional Federal Reserve Banks: What do they exclude in their inflation calculations that other measures do not? c) What is the preferred inflation measure for the Federal Reserve Board of Governors? 1. $$\mathrm{CPI}$$ 2. Core CPI 3. Chained CPI 4. $$\mathrm{PCE}$$