The table below gives the prices of four items-A,B,C,and D-sold at a store in 2005 and 2010.
a.Using 2005 as the base year,calculate the price relative index for the four items.
b.Calculate an unweighted aggregate price index for these items.
c.Find the Laspeyres weighted aggregate index for these items.
d.Find the Paasche index for these items.
e.Construct a weighted aggregate quantity index using 2005 as the base year and price as the weight.
Definitions:
Return On Investment (ROI)
A financial metric used to evaluate the efficiency of an investment, calculated as the profit earned from an investment divided by its cost.
Operating Assets
Assets such as property, plant, and equipment used in the daily operations of a business to generate revenue.
Turnover
The total sales made by a business in a specific period, or the rate at which employees leave and are replaced within a company.
Return On Investment (ROI)
A financial metric used to evaluate the efficiency of an investment, calculated by dividing the benefit (return) of an investment by its cost.
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