A pet store specializes in breeding and selling small dogs. Below you are given the prices they charged for various breeds in 2005 (base period) and 2010 (current period), with the associated number of dogs sold in 2010 (current period).
a.Compute an unweighted aggregate price index for 2010 using 2005 as the base period.
b.Compute a weighted aggregate price index (Paasche index) for 2010.

Question

A pet store specializes in breeding and selling small dogs. Below you are given the prices they charged for various breeds in 2005 (base period) and 2010 (current period), with the associated number of dogs sold in 2010 (current period).  
a.Compute an unweighted aggregate price index for 2010 using 2005 as the base period.
b.Compute a weighted aggregate price index (Paasche index) for 2010.

Quizplus · Accepted Answer

The Answer of A pet store specializes in breeding and selling small dogs. Below you are given the prices they charged for various breeds in 2005 (base period) and 2010 (current period), with the associated number of dogs sold in 2010 (current period).  
a.Compute an unweighted aggregate price index for 2010 using 2005 as the base period.
b.Compute a weighted aggregate price index (Paasche index) for 2010.

A Pet Store Specializes in Breeding and Selling Small Dogs