Question

In: Computer Science

Listed below are the sales at Roberta’s Ice Cream Stand for the last 5 years, 2012 through 2016.

Listed below are the sales at Roberta’s Ice Cream Stand for the last 5 years, 2012 through 2016.

Year.................................................... Sales
2012................................................ $130,000
2013................................................ 145,000
2014................................................ 120,000
2015................................................ 170,000
2016................................................ 190,000

a. Find the simple index for each year using 2012 as the base year.
b. Find the simple index for each year using 2012–2013 as the base year.

Solutions

Expert Solution

The available data is as shown in below table,

Year

Sales

2012

130000

2013

145000

2014

120000

2015

170000

2016

190000

 

a)

Calculate the simplex index for each year using 2012 as the base year.

 

Year

Sales

Simplex index

Simplex index × 100

2012

130000

0

0

2013

145000

145000/130000 = 1.1154

1.1154 × 100 = 111.54

2014

120000

120000/130000 = 0.9231

0.9231 × 100 = 92.31

2015

170000

170000/130000 = 1.3077

1.3077 × 100 = 130.77

2016

190000

190000/13000 = 1.4615

1.4615 × 100 = 146.15

 

b)

Calculate the simplex index for each year using 2012-2013 as the base year.

Now, calculate the simple index for each year.

 

Year

Sales

Simplex index

Simplex index × 100

2012

130000

0

0

2013

145000

0

0

2014

120000

120000/137500 = 0.8727

0.8727 × 100 = 87.27

2015

170000

170000/137500 = 1.2364

1.2364 × 100 = 123.64

2016

190000

190000/137500 = 1.3818

1.3818 × 100 = 138.18


a) The simplex index for each year using 2012 as the base year is 146.15.

 

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