In: Computer Science
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.
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.