STA304 Assignment 1 Solution Fall 2021

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Q.1 Given the prices of three commodities, Using 1990 as the base period, compute, simple average of relatives price indices using

i.                    A.M

ii.                  Median

year	Price	Price	Price
	A	B	C
1990	30.00	12.00	20.00
1991	30.50	13.50	23.50
1992	32.50	14.50	25.00
1993	32.50	14.00	25.00

Solution:

year	Price	Price	Price	Total	Mean	Median
	A	B	C
1990	100	100	100	300	100	100
1991	102	113	118	332	111	113
1992	108	121	125	354	118	121
1993	108	117	125	350	117	117

Q.2. Construct the following weighted aggregative price index numbers (by using Paasche’s formula) for 1960 by using 1956 as a base period

Commodity	Prices	Prices	Quantities	Quantities
	1956	1960	1956	1960
A	600	1200	100	150
B	400	700	80	100
C	180	432	60	72
D	450	363	30	33

Solution:

Commodity	Prices	Prices	Quantities	Header	P1Q1	PoQ1
	1956 (Po)	1960 (P1)	1956 (Qo)	1960 (Q1)	Cell	Cell
A	600	1200	100	150	180000	90000
B	400	1200	80	100	70000	40000
C	180	432	60	72	31104	12960
D	450	363	30	33	11979	14850l
					293083	157810

Index For 1960 = 

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