Analyzing Consumer Price Index Over Time in the Seattle-Tacoma-Bellevue Area

Document Type

Poster

Event Website

https://source2022.sched.com/

Start Date

16-5-2022

End Date

16-5-2022

Keywords

Mathematics, Inflation, Analysis

Abstract

The Consumer Price Index (CPI) has been a measure of inflation dating back to the early 20th century; consisting of a variety of goods that the typical house in the United States would purchase, it has been steadily increasing up until present day. For this, the data, sourced from the U.S. Bureau of Labor Statistics, covers the value of the Consumer Price Index over time in the Seattle area, specifically Seattle-Tacoma-Bellevue area. Various forms of numerical analysis were applied to this data, including the use of Taylor polynomials, numerical differentiation, and Lagrange interpolation. Using numerical differentiation, the rate of change of the tabular data was estimated over time. With this, the two forms of interpolation, Taylor polynomials and Lagrange polynomials, were applied to the data in order to evaluate important points in the set as well as project future values of the CPI. In order to get an understanding of the accuracy of these models, evaluations of the absolute error and the error bound were done for both forms of interpolation in regards to the data set. In addition, error between the numerical differentiation of the data set and the numerical differentiation of the Lagrange polynomial was done, in order to gain further insight into the accuracy of the models.

Faculty Mentor(s)

Brandy Wiegers

Department/Program

Applied Mathematics

Additional Mentoring Department

Mathematics

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Additional Files

Haviland Source Presentation.mp4 (23239 kB)
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May 16th, 12:00 AM May 16th, 12:00 AM

Analyzing Consumer Price Index Over Time in the Seattle-Tacoma-Bellevue Area

The Consumer Price Index (CPI) has been a measure of inflation dating back to the early 20th century; consisting of a variety of goods that the typical house in the United States would purchase, it has been steadily increasing up until present day. For this, the data, sourced from the U.S. Bureau of Labor Statistics, covers the value of the Consumer Price Index over time in the Seattle area, specifically Seattle-Tacoma-Bellevue area. Various forms of numerical analysis were applied to this data, including the use of Taylor polynomials, numerical differentiation, and Lagrange interpolation. Using numerical differentiation, the rate of change of the tabular data was estimated over time. With this, the two forms of interpolation, Taylor polynomials and Lagrange polynomials, were applied to the data in order to evaluate important points in the set as well as project future values of the CPI. In order to get an understanding of the accuracy of these models, evaluations of the absolute error and the error bound were done for both forms of interpolation in regards to the data set. In addition, error between the numerical differentiation of the data set and the numerical differentiation of the Lagrange polynomial was done, in order to gain further insight into the accuracy of the models.

https://digitalcommons.cwu.edu/source/2022/COTS/49