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Question: the owner of a service station in sydney recorded the...

Question details

The owner of a service station in Sydney recorded the price ($) and the number of units sold per day of its four most popular items (after petrol). These data were recorded for the years 1980, 1990 and 2020, as shown below.

  1. a  Taking 1980 as the base year, calculate the simple aggregate price index for 1990 and 2020.

  2. b  Calculate the average of relative price index for 1990 and 2020, taking 1980 as the base year.

  3. c  Calculate the Laspeyres price index for 1990 and 2020, with base 1980 = 100. Interpret the index.

  4. d  Calculate the Paasche price index for 1990 and 2020, with base 1980 = 100. Interpret the index.

e. Calculate the Fisher price index for 1990 and 2020, with base 1980 = 100.

Item

p1980

q1980

p1990

q1990

p2020

q2020

Oil (litre)

0.65

23

1.20

10

3.50

5

Tyres

23.00

12

55.00

15

110.00

16

Antifreeze (500 mL)

0.80

7

2.00

20

5.50

14

Battery

27.00

13

45.00

22

155.00

20

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