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Instruction 14-21
Given Below Are the Average Prices for Three

question 141

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Instruction 14-21
Given below are the average prices for three types of energy products in Australia from 2006 to 2010.
 Year  Electricity  Natural Gas  Fuel Oil 200643.20525.8930.892200716.95928.7490.969200847.20228.9331.034200948.87429.8720.913201048.69328.3840.983\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Electricity } & \text { Natural Gas } & \text { Fuel Oil } \\\hline 2006 & 43.205 & 25.893 & 0.892 \\\hline 2007 & 16.959 & 28.749 & 0.969 \\\hline 2008 & 47.202 & 28.933 & 1.034 \\\hline 2009 & 48.874 & 29.872 & 0.913 \\\hline 2010 & 48.693 & 28.384 & 0.983 \\\hline\end{array}
-Referring to Instruction 14-21,what is the Paasche price index for the group of three energy items in 2009 for a family that consumed 13 units of electricity,26 unites of natural gas and 235 units of fuel oil in 2009 using 2006 as the base year?

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Definitions:

Statistical Analysis

A method of collecting, reviewing, and interpreting data to discover patterns, correlations, or trends.

Present Value

It measures the current value of a future amount of money or stream of cash flows, using a specific discount rate to account for the time value of money.

Projected Future Cash Flows

An estimation of the amount of money expected to be received and paid out by a business over an upcoming period.

Fundamental Analysis

An approach to evaluating a security that involves analyzing financial statements, health of the economy, industry conditions, and other factors to determine a security's intrinsic value.

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