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Fixed base. Chain base. Laspeyres Price and Quantity. Paache Price and Quantity. Interpretation. 

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rebelmaths

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The table below shows the average weekly rent for residents of a town.

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Year201120122013201420152016
Rent €{a}{b}{c} {d}{f}{g}
\n

 

", "variables": {"d": {"description": "", "templateType": "anything", "name": "d", "definition": "Random(550..600)", "group": "Ungrouped variables"}, "g": {"description": "", "templateType": "anything", "name": "g", "definition": "Random(600..650)", "group": "Ungrouped variables"}, "f": {"description": "", "templateType": "anything", "name": "f", "definition": "Random(600..650)", "group": "Ungrouped variables"}, "b": {"description": "", "templateType": "anything", "name": "b", "definition": "Random(500..600)", "group": "Ungrouped variables"}, "a": {"description": "", "templateType": "anything", "name": "a", "definition": "Random(485..550)", "group": "Ungrouped variables"}, "c": {"description": "", "templateType": "anything", "name": "c", "definition": "Random(500..600)", "group": "Ungrouped variables"}}, "ungrouped_variables": ["a", "c", "b", "d", "g", "f"], "preamble": {"js": "", "css": ""}, "rulesets": {}, "variable_groups": [], "advice": "", "tags": [], "variablesTest": {"maxRuns": 100, "condition": ""}, "metadata": {"licence": "Creative Commons Attribution 4.0 International", "description": "

Fixed Base Index Numbers

\n

rebelmaths

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To calculate the index number for a particular year use the following formula

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$\\frac{\\text{Value for the year}}{\\text{Value for the base year}}\\times 100$

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For the years 2011 to 2016 calculate a fixed base index for the rent using 2011 as the base year (round answers to nearest whole number).

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Year201120122013201420152016
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Index Number

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[[0]][[1]][[2]] [[3]][[4]][[5]]
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 Click on Show steps if you want more information. You will not lose any marks by doing so.

\n

 

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A company manufactures three types of {type[3]}. The table below shows the prices and quantities sold of the three types of {type[3]} over the three year period 2010-2012.  

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
PricePricePriceQuantityQuantityQuantity
201020112012201020112012
{type[0]}{pa1}{pa2}{pa3}{qa1}{qa2}{qa3}
{type[1]}{pb1}{pb2}{pb3}{qb1}{qb2}{qb3}
{type[2]}{pc1}{pc2}{pc3}{qc1}{qc2}{qc3}
\n

 

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\n

 Calculate a Laspeyres (base-weighted) Price index for 2011, with 2010 as the base year.

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Laspeyres Price Index $I=\\dfrac{\\sum p_n q_0}{\\sum p_0 q_0}$.

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Note

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- $p$ stands for price and $q$ stands for quantity

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- the subscipt $0$ refers to the base year and the subscript $n$ refers to the year for which the index number is being calculated.

\n

- $\\sum$ stands for \"sum of\"

\n

It may be helpful to make out columns

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Type$p_n$$q_0$$p_0$$p_n \\times q_0$$p_0   \\times   q_0$
price for year $n$quantity for base yearprice for base year
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Laspeyres Price Index

\n

rebelmaths

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A company manufactures three types of {type[3]}. The table below shows the prices and quantities sold of the three types of {type[3]} over the three year period 2010-2012.  

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
PricePricePriceQuantityQuantityQuantity
201020112012201020112012
{type[0]}{pa1}{pa2}{pa3}{qa1}{qa2}{qa3}
{type[1]}{pb1}{pb2}{pb3}{qb1}{qb2}{qb3}
{type[2]}{pc1}{pc2}{pc3}{qc1}{qc2}{qc3}
\n

 

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\n

 Calculate a Paache (current-weighted) Quantity index for 2012, with 2010 as the base year.

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Paasche Price Index $I=\\dfrac{\\sum q_n p_n}{\\sum q_0 p_n}$.

\n

Note

\n

- $p$ stands for price and $q$ stands for quantity

\n

- the subscipt $0$ refers to the base year and the subscript $n$ refers to the year for which the index number is being calculated.

\n

- $\\sum$ stands for \"sum of\"

\n

It may be helpful to make out columns

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Type$p_n$$q_0$$p_0$$p_n \\times q_0$$p_0   \\times   q_0$
price for year $n$quantity for base yearprice for base year
\n

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Laspeyres Price Index

\n

rebelmaths

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