The Table Below Lists Two Index Number Series for Median

question 19

Essay

The table below lists two index number series for median household income of a particular country. $\begin{array}{|c|c|c|} \hline& 2000 & 2010 \\\hline \text { Year } & \text { Base } & \text { Base } \\\hline \mathbf{1 9 9 9} & 98 & \\\hline \mathbf{2 0 0 0} & 100 & \\\hline \mathbf{2 0 0 1} & 101 & \\\hline \mathbf{2 0 0 2} & 103 & \\\hline \mathbf{2 0 0 3} & 104 & \\\hline \mathbf{2 0 0 4} & 105 & \\\hline \mathbf{2 0 0 5} & 107 & \\\hline \mathbf{2 0 0 6} & 113 & 90 \\\hline \mathbf{2 0 0 7} & & 95 \\\hline \mathbf{2 0 0 8} & & 96 \\\hline \mathbf{2 0 0 9} & & 98 \\\hline \mathbf{2 0 1 0} & & 100 \\\hline \mathbf{2 0 1 1} & & 110 \\\hline \mathbf{2 0 1 2} & & 116 \\\hline \mathbf{2 0 1 3} & & 117 \\\hline\end{array}$ (a) Complete the 2000 index and the 2010 index by filling in the missing values.
(b) Interpret the 2013 value using each index.
(c) Which of your interpretations in part (b) do you prefer? Explain.

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Definitions:

Fourth Unit

Typically implies an incremental or additional unit in a sequence, often used in economics or logistics to discuss marginal utilities or effects.

Price Discrimination

The practice of charging different prices to different customers for the same product or service, based on factors like willingness to pay, location, or purchase volume.

Resell

The act of selling an item that one has previously purchased or acquired, potentially at a different price point.

Marginal Revenue

The additional income received from selling one more unit of a good or service, critical for determining the most profitable level of production.