Exam 15: Index Numbers

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown below. What is the unweighted aggregate price index?

Suppose your annual 2001 salary was $40,000 and your 2006 salary was $52,000. Assume the annual CPI rose from 177.1 to 202.9 during this period of time. What was the purchasing power of the dollar in 2006? _______

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown below. What is the Fisher Ideal Index?

Which index is computed using base year prices and quantities and current year prices and quantities together? _____________

Suppose your annual 2001 salary was $40,000 and your 2006 salary was $52,000. Assume the annual CPI rose from 177.1 to 202.9 during this period of time. What was your real income in 2006? _______

The following data was collected comparing car prices and quantity sold (thousands). Compute the Laspeyres price index to compare car prices in 2010 to 2000.

The following data was collected comparing car prices and quantity sold (thousands). Compute a simple aggregate index comparing car prices in 2010 to car prices in 2000.

A company has data on annual revenue for ten years beginning in 1995. The company wants to compute an index using the revenues from 1995, 1996, and 1997 as the based. If the revenues for the three years were (in $millions): $1.5, $1.3, and $2.0, what is the base value?

Prices and the number produced for selected agricultural items are: Using the Laspeyres method, what is the price index of agricultural production for 2006 (1980 = 100)?

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown below. What is Laspeyres' price index?

If the average age was $7.67 per hour in 1998 and $14.90 per hour last month, what is the index of hourly wages for last month based on the 1998 information?

What do most indexes have in common? ________________________________

The Paasche method uses the amounts consumed in the base period, q₀, as weights to determine a price index.

If the Laspeyres' index is 135.41 and the Paasche index is 145.34, what is the Fisher's Ideal Index?

What is another name for the unweighted method of computing an index? _____________________

If the Laspeyres' index is 111.95 and the Paasche index is 122.58, what is the Fisher's Ideal Index?

Etienne Laspeyres developed a method in the latter part of the 18^th century to determine a weighted index using base-period weights.

Suppose your annual 2005 salary was $95,000 and your 2010 salary was $125,000. Assume the annual CPI rose from 177.1 to 215.9 during this period of time. What was your real income in 2005? _______

If the base value is 100 and the current period value is 250, what is the index for the current period?

Which method for computing a weighted price index uses base year weights? _____________