Question: How to calculate the individual indices based on the data on three components expenses? The following table presents a decade's data on three components of

How to calculate the individual indices based on the data on three components expenses?

How to calculate the individual indices based on the data on three

The following table presents a decade's data on three components of a typical household's total expenses: education, housing, and food. Year Education Housing Food 1994 $13,740 $17,100 $16,600 1995 $15,180 $19,100 $17,600 1996 $16,380 $20,500 $20,000 1997 $17,700 $21,920 $22,500 1998 $18,940 $23,520 $24,000 1999 $20,260 $24,620 $25,200 2000 $22,280 $24,620 $26,000 2001 $24,510 $25,820 $26,600 2002 $29,300 $26,720 $26,700 2003 $32,230 $26,720 $27,600 a. Using year 1994 as the base year, construct individual indices for each of the three expense items

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