Many factors influence the retail price of computers. The table below shows the average retail price for a computer, including both desktops and laptops, during the month of November for each of the indicated years (Wall Street Journal, December 13, 2010).
Year Average Price ($)
2007.........................795
2008.........................705
2009.........................580
2010.........................615
a. Use 2007 as the base year and develop a price index for the retail price of a computer over this four-year period.
b. Use 2008 as the base year and develop a price index for the retail price of a computer over this four-year period.