EBK STATISTICS FOR BUSINESS & ECONOMICS
13th Edition
ISBN: 8220101456380
Author: Anderson
Publisher: CENGAGE L
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Chapter 20.2, Problem 1E
The following table reports prices and usage quantities for two items in 2009 and 2011.
- a. Compute price relatives for each item in 2011 using 2009 as the base period.
- b. Compute an unweighted aggregate price index for the two items in 2011 using 2009 as the base period.
- c. Compute a weighted aggregate price index for the two items using the Laspeyres method.
- d. Compute a weighted aggregate price index for the two items using the Paasche method.
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Use the following price information for selected foods for 2000 and 2013 given in the following table in the image.
a. Compute a simple price index for each of the four items. Use 2000 as the base period.
b. Compute a simple aggregate price index. Use 2000 as the base period.
c.Compute Laspeyres’ price index for 2013 using 2000 as the base period.
2. Discuss the Price Index most commonly used in your country. How is it calculated?
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Chapter 20 Solutions
EBK STATISTICS FOR BUSINESS & ECONOMICS
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