How are the data collected from the place-to-place survey used to calculate the post adjustment index?
The price survey generates average prices for each of the 318 items in the common basket of goods and services. These average prices are compared to the average prices of the same items collected in New York. The price relativities provide an indication of the cost of living at the various duty stations compared to New York, in terms of the purchase of the above items. However, to determine the cost-of-living differential, these price relativities must be averaged using the weights derived from the expenditures surveys. Thus the expenditures surveys determine the relative importance of the price relativities of the 318 items in the averaging process. Clearly both the price and expenditures surveys are indispensable in the process of determining a PAI that accurately reflects the cost of living at duty station. For instance, the price of an item or group of items can increase significantly in a duty station, but this would have no impact on the PAI, if professional staff members serving
Related Questions
- One of the criteria used to calculate Risk Index is operation time. What are some examples of 75th percentile of the duration for surgery?
- What data elements are used to calculate "timeliness" in the WCIS timeliness of payments reports?
- Can the data from the CUV4 be used as input to calculate UV index?
