The following table reports prices and usage quantities for two items in 2016 and 2018. a. Compute

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The following table reports prices and usage quantities for two items in 2016 and 2018. 

Quantity Unit Price ($) Item 2016 2018 2016 2018 1500 1800 7.50 7.75 2 1 630.00 1500.00 AB


a. Compute price relatives for each item in 2018 using 2016 as the base period. 

b. Compute an unweighted aggregate price index for the two items in 2018 using 2016 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.

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Statistics For Business & Economics

ISBN: 9781337901062

14th Edition

Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran

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