A company is using CPI data to adjust employee salaries. How might quality bias affect these adjustments?

• A. Quality bias has no effect on salary adjustments.
• B. Quality bias might lead to under-adjustment of salaries, as the CPI understates inflation by including quality improvements.
• C. Quality bias ensures accurate adjustment of salaries, as it reflects true inflation.
• D. Quality bias might lead to over-adjustment of salaries, as the CPI overstates inflation by not accounting for quality improvements.

Answer: (D)