Exam 17: Index Numbers

You are given the following information regarding four items. a.Calculate the price relative index for each item,using 2005 as the base year. b.Calculate the unweighted aggregate price index. c.Calculate a Laspeyres index. d.Calculate a Paasche index. e.Construct a weighted aggregate quantity index using 2005 as the base year and price as the weight.

A Composite price index where the prices of the items in the composite are weighted by their relative importance is called the

Consider the following data on personal savings and prices. Find the deflated savings for these years and comment on the result.

The prices of dining room tables,sofas,and entertainment centers at a furniture store for the years 2005 and 2010 are shown below. a. a.Compute an unweighted aggregate price index.Let 2005 be the base period. b.Interpret the meaning of the value that you found in Part

The quantity index is an index that is designed to measure changes in

The table below gives the prices of four items-A,B,C,and D-sold at a store in 2005 and 2010. a.Using 2005 as the base year,calculate the price relative index for the four items. b.Calculate an unweighted aggregate price index for these items. c.Find the Laspeyres weighted aggregate index for these items. d.Find the Paasche index for these items. e.Construct a weighted aggregate quantity index using 2005 as the base year and price as the weight.

The value given to a base-period price is

Exhibit 17-4 -Refer to Exhibit 17-4.The Paasche index in 2010 is (rounded)

A pet store specializes in breeding and selling small dogs.Below you are given the prices they charged for various breeds in 2005 (base period)and 2010 (current period),with the associated number of dogs sold in 2010 (current period). a.Compute an unweighted aggregate price index for 2010 using 2005 as the base period. b.Compute a weighted aggregate price index (Paasche index)for 2010.

The prices of 3 products for the years 2005 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.

A price index for a given item which is computed by dividing a current unit price by a base-period unit price and multiplying the result by 100 is known as the

The prices of an item for the years 2005 through 2010 are given below. Let 2005 be the base and compute the price relatives for the years 2005 through 2010.

Below you are given the price of coffee by pound from 2006 to 2010 and the consumer price index with a 2006 base. Deflate the series.

In 1995 the price of a pound of ground beef was $1.25.By 2010,the price had increased to $2.50.The price relative is

A monthly price index that is designed to measure changes in prices of goods sold in primary markets (i.e. ,first purchase of a commodity in non retail markets)is the

A monthly price index that uses the price changes in consumer goods and services for measuring the changes in consumer prices over time is known as the

Exhibit 17-4 -Refer to Exhibit 17-4.The unweighted aggregate price index in 2010 is (rounded)

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

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

The prices of a college Statistics workbook for the years 2005 through 2010 are shown below. a.Determine the price relatives for the years 2005 through 2010.Let 2005 be the base period. b.Interpret the meaning of the price relative for 2006.