Question

Problem 1. When John started his freshman year at GWU, his parents decided to make a basket of items that included his spending on major items so they can track his spending and compute inflation rates for the basket. John is now a junior (finishing up his 6th semester at GWU).His parents have the complete data until the end of 5th semester. To save you computation time, I included only three items from the basket:

Item 1: Textbook

Item 2: Eating at High End Restaurants

Item 3: Electronic items/Cell phones/laptop/tablet

Quantity of itemsAverage Price of each item ($)

tSemester123 tSemester123.

1S17351S1$70$35$200

2S25522S2$100$50$500

3S38233S3$60$80$400

4S410404S4$80$40$300

5S56515S5$120$50$900

6S6---6S6---

Use the information provided above, answer (compute) all the questions (CPIs) below:

a)Laspeyres price index for Semester 4 (S4)

b)Paasche Price Index for Semester 4 (S4)

c)Fisher for Price Index for Semester 4 (S4)

d)Lowe's Price Index for Semester 4 (S4) -- For this, use S3 basket as the base

e)Establish a Run chart (Chapter 13) for textbook price only (identify the center line and upper/control limits using the data provided) ---here, your answer can be based on the totalspending on the textbookper semester or average spending on the textbook - you decide on the chart you prefer --- All I want for youis to establish a norm (center line and upper/lower control limits based on 6-sigma rule)