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Didio Overturf

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Jan 25, 2024, 3:01:26 PM1/25/24
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To do these three things, the BLS is combining data from two places. The data on prices they collect from tens of thousands of retail stores and landlords; this is the data published in the CPI. The data on spending, on the other hand, is from the Consumer Expenditure Survey (CEX). The Consumer Expenditure Survey is also produced by the BLS, and in it, respondents log what they actually spend money on, everything from taxes to food at restaurants. The spending data in the CEX is used to define which items are in the CPI market basket and how much it item should be weighted.

The market basket is not defined point-in-time, but with an intentional lag. Typically the basket in one year (say 2021) is a reflection of average spending over multiple years, from multiple years prior (2017-2018). The CPI is not meant to capture short-term changes in spending, but short-term changes in prices, so the market basket is designed to be stable. Yet, spending habits and patterns do change over time, so the market basket is designed to change with long-term trends.

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CPI is produced by the Bureau of Labor Statistics (BLS). To produce the index, the \u201CI\u201D of CPI, they do three things (not necessarily in this order). First, they go out and collect prices from sellers. Second, they decide what prices to include in the index. This is called the \u201Cmarket basket\u201D and the prices tracked in the index are the prices in the defined basket. Third, they weight prices in the market basket based on how important they are to spending, and the result is the index. Weighting means that not all prices are equally influential within the index; something like rent and food is large, but watches are small. This is also why it\u2019s called an index and not an average, because it\u2019s not a true average.

To make family-, household-, or income-specific price indices, you\u2019d do the same thing you do for the market basket, but for subgroups of the population. With smaller groups, it\u2019s possible you\u2019d have to use more years of data to find the most consistent basket and weights, but it\u2019s not impossible.

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I remembered my night, the piano, and the feeling of genius. But there was a minor detail missing. I had no idea what my scribbles meant. Absolutely no idea. I had hit random keys on the piano and convinced myself I was playing a masterpiece.

Seeing everyone with tired eyes and tan scrubs broke the first piece of the stigma-ridden shame that I had been carrying on my walk down the hall. After about a minute, the machine beeped and random numbers appeared on the screen to my left. The display on the screen was foggy \u2013 I wondered how many patients it had read.

In my house, there is a Yamaha electric piano stationed outside of my sisters\u2019 rooms. My sister, Emily, spends much of her time on the small leather bench playing the keyboard. One very late night in October, I slipped out of the creaky door to my bedroom and went to the piano. I turned up the volume ever so slightly, as not to disturb my sleeping house. I set down my small notepad above the keys and started to hit them randomly.

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Axioms of probability; discrete and continuous random vectors; functions of random variables; expectations, moments, characteristic functions, and momentgenerating functions; inequalities, convergence concepts, and limit theorems; central limit theorem; and characterization of simple stochastic processes: widesense stationality and ergodicity.

The recently introduced terminology of Big Data refers to data sets whose volume (amount of data collected, number of data sources), velocity (rate at which data is collected) and variety (heterogeneity of data and data sources) are so extreme that advanced data mining algorithms are needed to process and discover useful patterns in data for actionable intelligent decisions, in a reasonable amount of time.The purpose of this course is to introduce theoretical as well as practical aspects of advanced algorithms for mining massive datasets. Topics include: dimension reduction techniques, similarity algorithms, streaming, web mining, on-line mining, recommendation systems, market-basket models, and Naive Bayes & Bayesian networks.

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