Which of the Following Is the Correct Interpretation of a Laspeyres

question 17

Short Answer

Which of the following is the correct interpretation of a Laspeyres price index of 135, where the base year is 2007 and the current year is 2010? $\begin{array}{|l|l|}\hline A&\text { According to the Laspeyres price index, prices have risen by \( 35 \% \) from 2007 to 2010 .}\\\hline B&\text {According to the Laspeyres price index, prices have risen by \( 135 \% \) from 2007 to 2010 . }\\\hline C&\text { According to the Laspeyres price index, prices have risen by \( 35 \% \) from 2010 to 2007 . }\\\hline D&\text {None of these choices are correct. }\\\hline \end{array}$

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Definitions:

Contributing Factor

An element that plays a part in causing a situation or outcome.

Circumstantial Factor

An element or condition that affects a situation but is not a direct cause; often considered in evaluations or analysis of outcomes.

Medians

The middle value of a data set when it is ordered from least to greatest, or the line in geometry that divides a figure into two equal parts.

Frequencies

The rate at which a vibration occurs that constitutes a wave, either in material (as in sound waves) or in an electromagnetic field (as in radio waves and light).