Page 110 - New Employee Onboarding

manufacturing. Items are often lumped together in categories, resulting in a
dilution of the specific category performance.
b. Classification of the MPPI items must following the same classification method
as used by the NAICS. This will result in the MPPI correlation to the PPI that
includes the specific market basket item.
c. The correlation may not seem accurate, but the respective PPI will contain and
report on all the transactions for the market basket item, even though it is
pooled with other related items in the performance reporting.
d. This leaves the correlation slightly less than perfect because of dilution.

For more details on the MPPI and Price Index processes, see Appendix A and Appendix B.

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