Using the Laspeyres, Paasche, and Fishers indexes you computed in questions 2628, compute the percentage change in
Question:
Using the Laspeyres, Paasche, and Fisher’s indexes you computed in questions 26–28, compute the percentage change in price for each year (inflation rate), and compare the results for the three indexes. Which one gives the highest rate?
Which one the lowest?
Using the data from questions 26 and 27, compute Fisher’s ideal price index.
Question 26
On the Island of Crusoe, there are only two goods: coconuts and fish. Suppose you have the following information on the prices and quantities of fish and coconuts.
Question 27
Using the data from question 26, compute the Laspeyres price index.
Question 28
Using the data from questions 26 and 27, compute Fisher’s ideal price index.
Step by Step Answer:
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee