a) You are working as a purchase manager for a company. The following information has been supplied to you by two manufacturers of electricbulbs.

	Company A	Company B
Mean life (in hours)	1,300	1,288
Standard deviation (in hours)	82	93
Sample size	100	100

Which brand of electric bulbs are you going to purchase if you desire to take a risk of5%? (10mks)

b) The table below shows the quantities of four types of cereals consumed by a certain household in the years 2013 and 2014 and the unit price for each typeof cereal.

Type of cereal	2013 Price per	Quantity	2014 Price per	Quantity
	kg (Sh)	(kg)	kg(sh)	(kg)
Maize	50	100	80	120
Rice	80	140	100	120
Beans	40	150	80	110
Peas	50	100	90	100

Using year 2013 as the base year

1. Calculate Fisher's ideal indexnumber.
2. Briefly explain the advantage of using Paasche's index rather than Laspeyres index. (10mk)