The following table gives information concerning finance rates (in percent) for consumer installment loans from 1990 to
Question:
a. Using 1990 as the base year, construct an aggregate index of finance rates charged by commercial banks.
b. Using 1993 as the base year, construct an aggregate index of finance rates charged by finance companies for automobile loans.
c. Suppose that in 1990 commercial banks extended $50 billion worth of new automobile loans, $125 billion worth of other consumer loans, and $225 billion worth of credit card loans. Construct a Laspeyres index of finance rates charged by commercial banks.
d. Suppose that the amounts of credit extended for automobile loans by finance companies from 1990 to 1996 are as follows:
Construct a Paasche index of finance rates charged by finance companies for auto loans.
Step by Step Answer:
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell