The following values represent advertising rates paid by a regional catalog retailer that advertises either on radio or in newspapers:

Year Radio Rates ($) Newspaper Rates ($)
1 300 400 2 310 420 3 330 460 4 346 520 5 362 580 6 380 640 7 496 660

a. Determine a relative index for each type of advertisement using year 1 as the base year.

b. Determine an unweighted aggregate index for the two types of advertisement.

c. In year 1 the retailer spent 30% of the advertisement budget on radio advertising. Construct a Laspeyres index for the data.

d. Using year 1 as the base, construct a Paasche index for the same data.