Question

1. Given the selling price and the quantity consumed of two products A and B in 2 different years as follows:

Product Base Year Current Year P0 Q0 P0 Qn Pn Q0 Pn Qn Price P0 Quantity Q0 Price Pn Quantity Qn

A 11 109 15 137

B 61 134 75 167

S:

(a) Calculate the summation values in above table. (fill in the table)

(b) Simple Aggregate Index = =

(c) Weighted Aggregate Index = =

(d) Laspeyres Price Index = =

(e) Laspeyres Quantity Index = =

(f) Paasche Price Index = =

(g) Paasche Quantity Index = =

Question 2

Given the selling price and quantity consumed of three products X, Y and Z in different years as follows:

2016 2017

Products Price ($) Quantity (kg) Price ($) Quantity (kg)

X 6 152 9 106

Y 14 92 16 146

Z 21 62 19 186

Use 2016 as the base year:

a. find the Simple Aggregate Price Index in 2016 and 2017;

b. find the Weighted Aggregate Price Index in 2016 and 2017;

c. find the Laspeyres Price Index in 2016 and 2017;

d. find the Paasche Quantity Index in 2016 and 2017.

Correct the answers to 2 decimal places.

Answer 1