Help for 3B?
When is the best time of the year to buy soybeans? You have enough storage capacity (up to 6 months) to buy soybeans twice a year. Your job is to determine what two months those purchases should be made, keeping in mind that you don't want to have empty bins. Calculate a seasonal price index for soybeans using the five steps outlined in Chapter 7. The nominal price data for soybeans for years 2014 through 2019 are presented in the table below. You must do all five steps. I suggest you use Microsoft Excel or another spreadsheet software; it will make things easier on you. Write or print out your interpretation and explanation, but I want an electronic copy of the spreadsheet so I can check your work. 2014 2015 2016 2017 2018 2019 January $ 12.90 $ 10.30 $ 8.71 $ 9.71 $ 9.30 $ 8.64 February $ 13.20 $ 9.91 $ 8.51 $ 9.86 $ 9.50 $ 8.52 March $ 13.70 $ 9.85 $ 8.56 $ 9.69 $ 9.81 $ 8.52 April $ 14.30 $ 9.69 $ 9.01 $ 9.33 $ 9.85 $ 8.28 May $ 14.40 $ 9.58 $ 9.76 $ 9.29 $ 9.84 $ 8.02 June $ 14.30 $ 9.58 $ 10.20 $ 9.10 $ 9.55 $ 8.31 July $ 13.10 $ 9.95 $ 10.20 $ 9.42 $ 9.08 $ 8.38 9.24 $ 8.59 $ 8.22 9.35 $ 8.77 $ 8.35 9.18 $ 8.58 $ 8.60 August $ 12.40 $ 9.71 $ 9.93 $ September $ 10.90 $ 9.05 $ 9.41 $ October $ 9.97 $ 8.81 $ 9.30 $ November $ 10.20 $ 8.68 $ 9.47 $ December $ 10.30 $ 8.76 $ 9.64 $ Note: Prices are not adjusted for inflation. Data source: USDA, National Agricultural Statistics Service 9.22 $ 8.37 $ 8.59 9.30 $ 8.57 $ 8.70 3b) Be sure to interpret the index to clarify the two best times of the year to buy soybeans, also keeping in mind your storage limitations. When is the best time of the year to buy soybeans? You have enough storage capacity (up to 6 months) to buy soybeans twice a year. Your job is to determine what two months those purchases should be made, keeping in mind that you don't want to have empty bins. Calculate a seasonal price index for soybeans using the five steps outlined in Chapter 7. The nominal price data for soybeans for years 2014 through 2019 are presented in the table below. You must do all five steps. I suggest you use Microsoft Excel or another spreadsheet software; it will make things easier on you. Write or print out your interpretation and explanation, but I want an electronic copy of the spreadsheet so I can check your work. 2014 2015 2016 2017 2018 2019 January $ 12.90 $ 10.30 $ 8.71 $ 9.71 $ 9.30 $ 8.64 February $ 13.20 $ 9.91 $ 8.51 $ 9.86 $ 9.50 $ 8.52 March $ 13.70 $ 9.85 $ 8.56 $ 9.69 $ 9.81 $ 8.52 April $ 14.30 $ 9.69 $ 9.01 $ 9.33 $ 9.85 $ 8.28 May $ 14.40 $ 9.58 $ 9.76 $ 9.29 $ 9.84 $ 8.02 June $ 14.30 $ 9.58 $ 10.20 $ 9.10 $ 9.55 $ 8.31 July $ 13.10 $ 9.95 $ 10.20 $ 9.42 $ 9.08 $ 8.38 9.24 $ 8.59 $ 8.22 9.35 $ 8.77 $ 8.35 9.18 $ 8.58 $ 8.60 August $ 12.40 $ 9.71 $ 9.93 $ September $ 10.90 $ 9.05 $ 9.41 $ October $ 9.97 $ 8.81 $ 9.30 $ November $ 10.20 $ 8.68 $ 9.47 $ December $ 10.30 $ 8.76 $ 9.64 $ Note: Prices are not adjusted for inflation. Data source: USDA, National Agricultural Statistics Service 9.22 $ 8.37 $ 8.59 9.30 $ 8.57 $ 8.70 3b) Be sure to interpret the index to clarify the two best times of the year to buy soybeans, also keeping in mind your storage limitations
