As an intern in the Fulton County Economic Development Office, you have been asked to develop a special-purpose index for your county. Three economic series seem to hold promise as the basis of an index. These data are the price of cotton (per pound), the number of new automobiles sold in the county, and the rate of money turnover (published by the local bank). After discussing the project with your supervisor and the director, you decide that money turnover should have a weight of .60, the number of new automobiles sold a weight of .30, and the cotton price .10. The base period is 1999. Cotton Price Money Turnover Year Automobiles Sold 1999 1,000 $0.20 0.25 80 1,200 900 2004 90 2009 0.50 75 (a) Construct the index for 2004 and 2009. (b) Interpret the index for 2004 and 2009.

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