EBK STATISTICS FOR BUSINESS & ECONOMICS
12th Edition
ISBN: 9780100460461
Author: Anderson
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
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.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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?
This question has 2 parts.
Chapter 20 Solutions
EBK STATISTICS FOR BUSINESS & ECONOMICS
Ch. 20.2 - The following table reports prices and usage...Ch. 20.2 - An item with a price relative of 132 cost 10.75 in...Ch. 20.2 - A large manufacturer purchases an identical...Ch. 20.2 - Prob. 4ECh. 20.2 - Under the last-in, first-out (LIFO) inventory...Ch. 20.3 - Price relatives for three items, along with...Ch. 20.3 - The Mitchell Chemical Company produces a special...Ch. 20.3 - Prob. 8ECh. 20.3 - Compute the price relatives for the RB Beverages...Ch. 20.5 - Registered nurses in 2007 made an average hourly...
Ch. 20.5 - The average hourly wage rate for construction...Ch. 20.5 - Shipments of product from manufacturer to the...Ch. 20.5 - Prob. 13ECh. 20.7 - Prob. 14ECh. 20.7 - Prob. 15ECh. 20.7 - An automobile dealer reports the 1994 and 2011...Ch. 20 - Many factors influence the retail price of...Ch. 20 - Prob. 18SECh. 20 - Prob. 19SECh. 20 - Boran Stockbrokers, Inc., selects four stocks for...Ch. 20 - Compute the price relatives for the four stocks...Ch. 20 - Prob. 22SECh. 20 - Seafood price and quantity data are reported by...Ch. 20 - Prob. 24SECh. 20 - The closing price of Apple stock, adjusted for...Ch. 20 - Prob. 26SE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Complete the following table by finding the net price factor, single equivalent discount, trade discount (in dollars), and net price (in dollars). Round the net price factor and single equivalent discount to five decimal places, and the trade discount and net price to the nearest cent, when necessary. List Price $430.70 Trade Discount Rate 31/15/5 Net Price Factor Single Equivalent Discount tA Trade Discount tA Net Pricearrow_forward8. DETAILS BRECMBC9 7.1III.TB.017. ASK YOU Find the net price for an order of gift Items with a list price $23,000 less trade discounts of 30/25/15. Use the net price, complement method. O $5,750.00 O $10,263.75 O $12,736.25 O $17,250.00 9. DETAILS BRECMBC9 7.IV.TB.012. ASK YOUR TE- The local zoo buys hay from a supplier with an Involce amount of $13,220. The terms of the sale are 5/22, n/30. What is the net amount due on the order if the bill is paid by the 22nd day? O $661 O $3,305 O $12,559 O $13,220 10. DETAILS BRECMBC9 7.IV.TB.003. ASK YOUR TEACH A small retailler buys goods from a vendor with an invoice amount of $9,300. The terms of the sale are 2/10, n/30. What is the net amount due on the goods if the bill is paid by the 10th day? O $186 O $930 O $8,370 O $9,114 MacBook Air GRO. esc 44 41 1. %23 %24 & 2. 3 4 6 7. 8 9 Q E T. Y U lab A D G H K = lock V\ C olt alt atrol option command command optionarrow_forwardUnder the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Product A B C Ending Inventory 500 50 100 40 Unit Price ($) Beginning Ending 0.15 1.60 4.50 11.00 0.21 1.80 4.20 13.20 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round your answer to the nearest integer.) I = What type of weighted aggregate price index must be developed for the LIFO inventory valuation? Paasche index Laspeyres Indexarrow_forward
- An enquiry into the budgets of the middle class families of a certain city revealed that on an average the percentage expenses in the different groups were : Food 45, Rent 15, Clothing 12, Fuel and Light 8, Miscellaneous 20. The group indices for the current year as compared with a fixed base period were respectively 410, 150, 343, 248 and 285. Calculate the cost of Living Index Number for the current year. Mr. X was getting Dollar 240 in the base period and 430 in the current year. State how much he ought to have received as extra allowance to maintain his former standard of living ?arrow_forwardCalculate the rate of markup on cost if the selling price is RO 450, expenses of 30 RO and a profit of 12 RO. a. 10.29% b. 90.66% c. 7.35% d. 9.33%arrow_forward3. The income tax in a certain state is calculated as follows: 2% on the first GhC1000.00, 3% on the next GhC2000.00, 4% on the next GhC3000.00, and 5% thereafter. Find the tax to be paid by an individual who earns an income of GhC25000.00 per month.arrow_forward
- Consider a one-step market consisting of a bond and a stock. The priceof The stock is £8 initially and can rise or fall by £1 at each time step. The bond hasinterest rate r = 5%.i. Calculate the price of a European call option on this stock with a strike price of£7.50.ii. Now consider a two-step market with the stock price rising or falling by £1 ateach step. Calculate the price of this European call option at time 0. Will therisk-neutral probabilities at both steps be the same? Why?It would be helpful to draw a tree.arrow_forwardJohn Kittle, an independent insurance agent, uses a five-year moving average to forecast the number of claims made in a single year for one of the large insurance companies he sells for. He has just discovered that a clerk in his employ incorrectly entered the number of claims made four years ago as 1,400 when it should have been 1,200.a. What adjustment should Mr. Kittle make in next year’s forecast to take into account the corrected value of the number of claims four years ago?b. Suppose that Mr. Kittle used simple exponential smoothing with a = .2instead of moving averages to determine his forecast. What adjustment is now required in next year’s forecast? (Note that you do not need to know the value of the forecast for next year in order to solve this problem.)arrow_forwardSolve for the following. Compute the peso mark up and percentage mark-up. 1. Selling price 50.00 Purchase cost 35.00 Peso Markup Peso Markup Selling Price Percentage Markup 2. 3. Peso Markup Purchase Cost рего Pe Markup Selling Price Percentage Markup 5. Selling Price 75.00 Purchase Cost 30.00 Peso Markup 6. Peso Markup Selling Price Percentage Markup 4. Markup 7. Peso Markup Purchase Cost Percentage Markup 8. Selling Price 9. 25.00 45.00 32.00 5.00 18.00 40.00 Purchase Cost Pe So Peso Markup Selling Price Percentage Markup 10. Selling Price 100.00 Purchase Cost 50.00 Peso Markup Markup 17.00 30.00 5.00 18.00 16.00 8.00 12.00 22.00 Remarrow_forward
- If selling Price for laptop is OMR 800 and is marked down by 30% in promotional offers. compute sales price after discount O a. OMR 560 O b. OMR 240 O c. OMR 340 O d. OMR 660arrow_forwardGo to Yahoo!Finance and download data at the MONTHLY frequency for the stock Apple Inc. with ticker AAPL with starting date January 1, 1990 and end date August 4, 2016. Use the ADJUSTED CLOSING PRICE to create the monthly RETURNS that are the percentage change of the adjusted closing price (NB: make sure to sort first the price from OLDEST TO NEWEST; the percentage return is 100 times the price change between the current and previous month divided by the price in the previous month). Based on the time series of the stock return, answer the following questions (NB: you should have 319 monthly returns): Calculate the sample mean or average of the stock return: Calculate the sample standard deviation of the stock return: !!! For the questions below, use the values for the mean and std. dev. that you typed above (only the first 2 decimals)!!! Assuming that the returns follow a normal distribution: Calculate the P(return > 2.21): Calculate the P(-12.37 x) = 0.9704: Calculate the lower…arrow_forwardUnder the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($) Ending Inventory Beginning Ending Product A 500 0.15 0.19 50 1.40 1.80 100 4.50 4.20 60 11.00 13.20 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round your answer to the nearest integer.) I = What type of weighted aggregate price index must be developed for the LIFO inventory valuation? O Paasche index O Laspeyres Indexarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY