Question: Consider the following table, which reports the sale (quantity in 1,000s) of homes by region for 2007, 2008, and 2009. Use this information, along with

Consider the following table, which reports the sale (quantity in 1,000s) of homes by region for 2007, 2008, and 2009.

Use this information, along with the price data provided in Exercise 20, to
a. Compute and interpret the Laspeyres aggregate home price index for the U.S.
b. Compute and interpret the Paasche aggregate home price index for the U.S.
c. Comment on the differences between the two indices?

Region Northeast1006 Midwest1327 South West 2007 2008 849 1129 1865 1070 2009 2235 1084 1165 1913 1210

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