An electronics and appliance store sells three different brands of DVD recorders. The three brands sold by the store are Brand A, Brand B, and Brand C. The unit prices for the years 2005 and 2010, with the volume of sales (units sold) for 2005, are given below.
a.Compute an unweighted aggregate price index for DVD recorders with 2005 as the base period.
b.Compute a weighted aggregate price index (Laspeyres index) for 2010 with 2005 as the base period.

Question

An electronics and appliance store sells three different brands of DVD recorders. The three brands sold by the store are Brand A, Brand B, and Brand C. The unit prices for the years 2005 and 2010, with the volume of sales (units sold) for 2005, are given below.  
a.Compute an unweighted aggregate price index for DVD recorders with 2005 as the base period.
b.Compute a weighted aggregate price index (Laspeyres index) for 2010 with 2005 as the base period.

Quizplus · Accepted Answer

The Answer of An electronics and appliance store sells three different brands of DVD recorders. The three brands sold by the store are Brand A, Brand B, and Brand C. The unit prices for the years 2005 and 2010, with the volume of sales (units sold) for 2005, are given below.  
a.Compute an unweighted aggregate price index for DVD recorders with 2005 as the base period.
b.Compute a weighted aggregate price index (Laspeyres index) for 2010 with 2005 as the base period.

An Electronics and Appliance Store Sells Three Different Brands of DVD