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COLI PRESENTATION Wolfram Data Summit. September 9, 2011. Introduction. ACCRA Cost of Living Index American Chamber of Commerce Researchers’ Association Published by Council for Community and Economic Research (formerly ACCRA) Published Continuously Since 1968 Three Quarters per Year - PowerPoint PPT PresentationTRANSCRIPT
COLI PRESENTATIONCOLI PRESENTATIONWolfram Data SummitWolfram Data Summit
September 9, 2011
Introduction
ACCRA Cost of Living Index• American Chamber of Commerce Researchers’ Association
Published by Council for Community and Economic Research (formerly ACCRA)
Published Continuously Since 1968
Three Quarters per Year
Participants’ Input/Community Volunteers
What is the ACCRA Cost of Living Index?
Measure of relative price differences among urban areas
Designed for professional and managerial households in the top income quintile
Prices are collected at a specified time, in strict conformance with standard specifications
Our Methodology
C2ER Does Not Believe that End Users are Well-Served Unless Methodology is Understood
Data Collection Practices
Formulas
Average Prices Used
Technical Advisory Board
Items by Categories
A Specific Standard of Living
Designed for a Specific Standard of Living• For first 30 Years, it was a ‘Mid-Management’ SOL
Designed Specifically for Professional/Managerial Households• Top Income Quintile (20th Percentile)
Due to Regional Salary Variation, No One Income is Specified• One Salary Does Not Fit All Locations
Salary Range is $70,000 to $100,000• Expected to be Higher in ‘Traditionally’ More Expensive Communities
o San Francisco, Boston, New York City, Washington DC, Los Angeles, etc.
Who Participates?
Open to All Places for 23 Years• Influx of Small, Rural and Semi-Rural Communities Forced a Change
o Difficulties of Adhering to Standards and Specifications
Participation Restricted to Federally Designated Metropolitan Statistical Areas – Census Bureau
• Participation is Open to Other Areas Meeting Certain Criteriao Community Population of 35,000 or Moreo County Population of 50,000 or More
• Some Small Communities ‘Grandfathered’ In
Many Communities Cannot Participate• Famous Examples
Who Participates?
Quarter 2, 2011 Participation
How Do We Know the Data Are Accurate?
Three-Stage Review Process• First Stage Review
o Look for Computational Errorso Atypical Priceso Unexpected Quarter-to-Quarter Price Shiftso Prices Not in Keeping with State, or Regional Averages
Second Stage Review• Each Report Reviewed Again for Problematic Prices Not Verified in First Stage• Preliminary Report is Run at This Stage
Third Stage• Project Manager Reviews Prices and Calculations Out of Line Regionally or
Historically• No more than 2 Standard Deviation Points Difference
o Outside Influences May Affect Priceso National Economy
Sampling Size
Samples Vary with Size of MSA• Largest Communities at Least 10 Samples• Micropolitan Areas at Least 3 Samples
More Data Gathered, More Accurate the Report• Wide Price Variations Can Reflect Not Enough Samples
Weights
Grocery Items Index (13.31%)
Housing Index (29.27%)• Monthly principal and interest payment for new home represents 23.50% of the
Composite Index
Utilities Index (10.22%)
Transportation Index (9.86%)
Health Care Index (4.23%)
Miscellaneous Goods and Services Index (33.11%)
How to Use Index
The most common application of the Index is to compare the differences between two places
• MSA #1 and MSA #2 – For Example
Subtract MSA #2’s Index from MSA #1’s Index, Divide the Result by MSA #2’s Index, and Multiply the Answer By 100%
• [((115.0-90.0)/90.0)*100%]
=(25.0/90.0)*100% = 28%
Fairly Small Differences Don’t Indicate Any Measurable Difference• Sampling and Non-Sampling Errors• Non-Probability Samples Means No Precise Confidence Interval
What Can the Index Tell Us About Dollar Amounts?
U.S. National Average
What Can the Index Tell Us About Dollar Amounts?
Area A
What Can the Index Tell Us About Dollar Amounts?
Area B
Latest Rankings
The Ten Most and Least Expensive Urban Areasin the ACCRA Cost of Living Index (COLI)
Second Quarter 2011National Average for 305 Urban Areas = 100
Most Expensive
Ranking Urban Areas Index1 New York (Manhattan) NY 220.72 New York (Brooklyn) NY 182.13 Honolulu HI 166.14 San Francisco CA 166.05 New York (Queens) NY 153.26 San Jose CA 151.27 Stamford CT 147.78 Truckee-Nevada County CA 147.09 Washington DC 144.4
10 Orange County CA 143.8
Least Expensive
COL
Ranking Urban Areas Index
1 Harlingen TX 80.62 Sherman-Denison TX 84.43 McAllen TX 84.74 Pueblo CO 84.95 Richmond IN 85.06 Kalamazoo MI 85.47 Temple TX 85.68 Pryor Creek OK 85.89 Memphis TN 86.0
10 Fayetteville AR 86.0
Relation to National Average
Quarter 2, 2011 Results
Cost of Living Index New Product Development
Online Calculator• Allows individual communities to benchmark their data to the national average• Large scale licensees can compare all participating communities
County-Level Index• Due autumn of 2011
Retirees Index
Contact Information
Website – www.coli.org
Email - [email protected]
Telephone – 703-522-4980 ext. 1021