6 ms·
Inflation readings being higher have nothing to do with a higher count. Exact same amount of data points for inputs as 2% inflation.
by RC_ITR 4y ago
Inflation readings being higher have nothing to do with a higher count.
Exact same amount of data points for inputs as 2% inflation.
- ivalm 4y agoIt’s not about the amount of measurement points, uncertainties in dollar amounts tend to scale as sqrt. When you error propagate that you see that inflation uncertainty scales with inflation. Very simple model Inflation=v1/v2 D(inflation)=sqrt((D(v1)/v2)^2+(v1/v2^2 D(v2))^2) Suppose D(v1)=c sqrt(v1) D(v2)=c sqrt(v2) D(inflation)=c sqrt(v1/v2^2+v1^2/v2^3)= c sqrt(inflation+inflation^2)/sqrt(v2) So can be seen that the leading term for uncertainty in inflation is linear with inflation.