Homework answers / question archive / 1) The price of a train ticket to London from Lanchester in      1995 is £30      1996 is £40      1997 is £50      2000 is £60    Use simple index and calculate price index for the ticket for these four years with base year 2000

1) The price of a train ticket to London from Lanchester in      1995 is £30      1996 is £40      1997 is £50      2000 is £60    Use simple index and calculate price index for the ticket for these four years with base year 2000

Statistics

Share With

---

1) The price of a train ticket to London from Lanchester in 

    1995 is £30 

    1996 is £40 

    1997 is £50 

    2000 is £60 

 

Use simple index and calculate price index for the ticket for these four years with base year 2000. (20 points) 

 

 

 

2. The prices and quantities of three commodities for four consecutive years are as follows: 

 

 

	Commodity A		Commodity B		Commodity B
Year	Price	Quantity	Price	Quantity	Price	Quantity
1	240	1200	121	3200	350	1800
2	265	1500	115	3000	368	1900
3	280	2700	128	2400	372	2100
4	290	2300	135	2500	368	2500

 

 Required (40 points): 

 

a) Explain Laspeyre's price index. 

b) Compute the Laspeyres price index for Year 4, using Year 1 as the base period. 

c) Explain Paasche's price index 

d) Compute the Paasche price index for Year 3, using Year 2 as the base period.