Consider the following price data from 2002 to 2010 Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 Price 3.34 3.56 3.61 4.06 4.25 4.37 4.68 4.59 4.81 a. Compute the simple price index using...
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Consider the following price data from 2002 to 2010
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 Price 3.34 3.56 3.61 4.06 4.25 4.37 4.68 4.59 4.81
a. Compute the simple price index using 2002 asthe base year. (Round your answers to 2 decimalplaces.)
Year Price index 2002 2003 2004 2005 2006 2007 2008 2009 2010
b. Update the index numbers with a base yearrevised from 2002 to 2005. (Round your answers to 2 decimalplaces.)
Consider the following price data from 2002 to 2010
| Year | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Price | 3.34 | 3.56 | 3.61 | 4.06 | 4.25 | 4.37 | 4.68 | 4.59 | 4.81 |
a. Compute the simple price index using 2002 asthe base year. (Round your answers to 2 decimalplaces.)
| Year | Price index |
|---|---|
| 2002 | |
| 2003 | |
| 2004 | |
| 2005 | |
| 2006 | |
| 2007 | |
| 2008 | |
| 2009 | |
| 2010 |
b. Update the index numbers with a base yearrevised from 2002 to 2005. (Round your answers to 2 decimalplaces.)
Answer & Explanation Solved by verified expert
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| Consider the following price data from 2002 to 2010 | |||||||||||
| Year | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | ||
| Price | 3.34 | 3.56 | 3.61 | 4.06 | 4.25 | 4.37 | 4.68 | 4.59 | 4.81 | ||
| (a) | Compute the simple price index using 2002 as the base year. | ||||||||||
| Solution: | |||||||||||
| Price index = (Current year price/Base year price)*100 | |||||||||||
| YEAR | Price | Price Index | |||||||||
| 2002 | 3.34 | 100 | |||||||||
| 2003 | 3.56 | 106.59 | |||||||||
| 2004 | 3.61 | 108.08 | |||||||||
| 2005 | 4.06 | 121.56 | |||||||||
| 2006 | 4.25 | 127.25 | |||||||||
| 2007 | 4.37 | 130.84 | |||||||||
| 2008 | 4.68 | 140.12 | |||||||||
| 2009 | 4.59 | 137.43 | |||||||||
| 2010 | 4.81 | 144.01 | |||||||||
| (b) | Update the index numbers with a base year revised from 2002 to 2005. | ||||||||||
| Solution: | |||||||||||
| Price index = (Current year price/Base year price)*100 | |||||||||||
| YEAR | Price | Price index | |||||||||
| 2002 | 3.34 | 82.27 | |||||||||
| 2003 | 3.56 | 87.68 | |||||||||
| 2004 | 3.61 | 88.92 | |||||||||
| 2005 | 4.06 | 100 | |||||||||
| 2006 | 4.25 | 104.68 | |||||||||
| 2007 | 4.37 | 107.64 | |||||||||
| 2008 | 4.68 | 115.27 | |||||||||
| 2009 | 4.59 | 113.05 | |||||||||
| 2010 | 4.81 | 118.47 | |||||||||
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