The following data indicate the price indices of lumber (price index for the base period 1982-1984 = 100) during the last 10 years: 11eb7a8e_d4d5_ad20_850e_25e3107c3748_SM2538_00 (a) If the base period (price index = 100) is reset to the year 2001, compute the inflation rate for lumber between 2001 and 2011. (b) If the past trend is expected to continue, how would you estimate the price of lumber in 2015?

Fundamentals of Engineering Economics 3rd Edition by Chan Park

Edition 3ISBN: 978-0132775427

Fundamentals of Engineering Economics 3rd Edition by Chan Park

Edition 3ISBN: 978-0132775427

Exercise 3

The following data indicate the price indices of lumber (price index for the base period 1982-1984 = 100) during the last 10 years:

(a) If the base period (price index = 100) is reset to the year 2001, compute the inflation rate for lumber between 2001 and 2011.
(b) If the past trend is expected to continue, how would you estimate the price of lumber in 2015?

Explanation

Verified

Price index is 100 for base year 1982-19...