Mathematics, 10.06.2021 14:00 Weirddobby3964
The following data gives the quantities and prices for items purchased by a certain family for two consecutive years.
Home Quantity(kgs) Price(Sh) Year 1 Year 2 Year1 Year 2 A 1225 1407 1155 1372 B 224 322 952 1117 C 336 301 2070 1867 D 455 462 1642 1552
Using Year1 as the base year, calculate:
(Do not include commas in the large values answers)
a) The Laspeyres price index for Year 2
ΣΣPt * Q0 =
Answer for part 1
ΣΣP0 * Q0 =
Answer for part 2
PL = (ΣPt∗Q0ΣP0∗Q0ΣPt∗Q0ΣP0∗Q0)*100
(2 decimal places)
Answer for part 3
b) The Paasche price index for Year 2
ΣΣPt * Qt =
Answer for part 4
ΣΣP0 * Qt =
Answer for part 5
Pp = (ΣPt∗QtΣP0∗QtΣPt∗QtΣP0∗Qt)*100
(2 decimal places)
Answer for part 6
c) The Fisher's Ideal price Index for Year 2
FI = PL∗PP−−−−−−√PL∗PP
Answer for part 7
Answers: 3
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