MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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Question
The average prices and quantities of six items grown in Nakuru County are shown in the following table:
|
2018 |
2020 |
||
Items |
Price (Kshs/Kg) |
Quantity (Kg,000) |
Price (Kshs/Kg) |
Quantity (Kg,000) |
Pineapples( A) |
10 |
4 |
12 |
5 |
Oranges(B) |
15 |
6 |
18 |
10 |
Bananas(C) |
10 |
6 |
10 |
10 |
Beans(D) |
20 |
10 |
22 |
20 |
Wheat(E) |
30 |
12 |
40 |
18 |
Millet(F) |
40 |
10 |
50 |
12 |
- Using 2018 as base year, compute Laspeyre’s, Paasche’s, Kelly’s and Fishers Price index numbers for 2020. Comment on the results.
- Demonstrate that the computed Fisher’s ideal price index number and Kelly’s price index both are preferred to Laspeyre’s, and Paasche’s based on time reversal test.
- Demonstrate that the computed Fisher’s method is preferred to Laspeyre’s, and Paasche’s based on factor reversal test.
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