MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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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

 

 

  1. Using 2018 as base year, compute Laspeyre’s, Paasche’s, Kelly’s and Fishers Price index numbers for 2020. Comment on the results.
  2. 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.
  3. Demonstrate that the computed Fisher’s method is preferred to Laspeyre’s, and Paasche’s based on factor reversal test.
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