Consider the following price data from 2002 to 2010.

Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 Price3.20 3.46 3.51 4.02 4.18 4.30 4.59 4.50 4.70

a. Compute the simple price index using 2002 as the base year.

b. Update the index numbers with a base year revised from 2002 to 2005.

c. Plot the index numbers with a base year of 2002 and a base year of 2005. Compare the two plots.