Exam 17: Index Numbers

An automobile dealership sells 3 different types of automobiles.Unit prices and the number of units sold in 2005,as well as prices for 2010,are shown below. Compute a weighted aggregate price index (Laspeyres index)for 2010 with 2005 as the base period.Explain your results.

An electronics and appliance store sells three different brands of DVD recorders.The three brands sold by the store are Brand A,Brand B,and Brand C.The unit prices for the years 2005 and 2010,with the volume of sales (units sold)for 2005,are given below. a.Compute an unweighted aggregate price index for DVD recorders with 2005 as the base period. b.Compute a weighted aggregate price index (Laspeyres index)for 2010 with 2005 as the base period.

A weighted aggregate price index where the weight for each item is its current-period quantity is the

The prices for a kilowatt hour of electricity for the years 2007 through 2010 are given below. Determine the price relatives for the years 2007 through 2010.Let 2007 be the base.

Exhibit 17-3 You are given the following information about items A,B,C,and D. -Refer to Exhibit 17-3.The Paasche index in 2010 (rounded)is

A computer equipment dealer sells three types of printers: Laser I,Laser II,and Laser III.The prices of these printers for the years 2005 and 2010 are given below. a. a.Compute an unweighted aggregate price index for the printers.Let 2005 be the base period. b.Interpret the meaning of the value that you found in Part

A quantity index which is designed to measure changes in the physical volume of production levels of industrial goods over time is the

A composite price index based on the prices of a group of items is known as the

The consumer price index is

The Paasche index is a weighted aggregate price index where the weight for each item is its

Exhibit 17-3 You are given the following information about items A,B,C,and D. -Refer to Exhibit 17-3.The Laspeyres index in 2010 (rounded)is

Exhibit 17-2 You are given the following information about items X,Y,and Z. -Refer to Exhibit 17-2.The price relative for item Y is

Dow Jones averages are aggregate price indexes reflecting the prices of stocks listed on the

Exhibit 17-1 You are given the following information about items A,B,C,and D. -Refer to Exhibit 17-1.The unweighted aggregate price index in 2010 is

The reason why weights are used in an aggregate index is to

Exhibit 17-1 You are given the following information about items A,B,C,and D. -Refer to Exhibit 17-1.The price relative for item A in 2010 (use 2005 as the base year)is

Aggregate price indexes reflecting the prices of stocks listed on the New York Stock Exchange are

A price relative was computed for houses.The base period is 2005.The price relative in 2010 was 130.The interpretation of the price relative is that

Exhibit 17-2 You are given the following information about items X,Y,and Z. -Refer to Exhibit 17-2.The unweighted aggregate price index for 2010 is

The price relative is a price index that is determined by