15. [Estimating company-specific inflation rates] Paper and pa- perboard products account for 90% of Westvaco's business; the other 10% is devoted to (specialty) chemical products. Producer price mdex data relevant to these segments are presented below. Producer Price Indices (1982 = 100) Pulp. Paper & Allied Products Chemical & Allied Products October 1999 177.0 147,0 November 177.7 147.1 December 177.9 147.3 January 2000 179.3 147.7 February 180.0 148.9 March 181.7 149.9 April 183.8 150 7 May June July 184.9 151.3 185.5 1517 185.) 152 6 August September October 184.5 1520 1844 1519 185.1 1519 Source Bureau of Labor Statistics

a. Based on the Producer Price indices, estimate the rate of price change for Westvaco's products.

b. Compare these estimates with those that can be derived from Westvaco's inventory footnote disclosures.

c. Discuss the factors that may explain why the estimates de- rived in parts a and b differ