An automobile dealership sells 3 different types of automobiles. Unit prices and the number of units sold in 2005, as well as prices for 2010, are shown below. Compute a weighted aggregate price index (Laspeyres index) for 2010 with 2005 as the base period. Explain your results.

Question

An automobile dealership sells 3 different types of automobiles. Unit prices and the number of units sold in 2005, as well as prices for 2010, are shown below.  Compute a weighted aggregate price index (Laspeyres index) for 2010 with 2005 as the base period. Explain your results.

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The Answer of An automobile dealership sells 3 different types of automobiles. Unit prices and the number of units sold in 2005, as well as prices for 2010, are shown below.  Compute a weighted aggregate price index (Laspeyres index) for 2010 with 2005 as the base period. Explain your results.

An Automobile Dealership Sells 3 Different Types of Automobiles