Question 5

Q5(b)

i. Taking 1998 as base year

YEAR(n) PRICE(P) in K Pn
PRICE RELATIVE¿ ×100
P0
1998 P0=6 = (6/6)100 = 100
1999 7 = (7/6)100 = 116.67
2000 7 = (7/6)100 = 116.67
2001 8 = (8/6)100 = 133.33
2002 10 = (10/6)100 = 166.67
2003 14 = (14/6)100 = 233.33
2004 12 = (12/6)100 = 200
2005 13 = (13/6)100 = 216.67

ii. Taking 2002 as base

YEAR(n) PRICE(P) in K Pn
PRICE RELATIVE¿ ×100
P0
1998 6 = (6/10)100 = 60
1999 7 = (7/10)100 = 70
2000 7 = (7/10)100 = 70
2001 8 = (8/10)100 = 80
2002 P0=10 = (10/10)100 = 100
2003 14 = (14/10)100 = 140
2004 12 = (12/10)100 = 120
2005 13 = (13/10)100 = 130

iii. Taking of 1998,1999, 2000 as base

6+7 +7 20
P 0= =
3 3
Price relative for;

1998;

6 6 ( 3)
¿ ×100= ×100=90
20 20
3
1999;
 7 (3 )
¿ ×100=105
20
2000;

7(3)
¿ ×100=105
20
2001;

8 (3 )
¿ ×100=120
20
2002;

10 ( 3 )
¿ ×100=150
20
2003;

14 ( 3 )
¿ ×100=210
20
2004;

12 ( 3 )
¿ × 100=180
20
2005;

13(3)
¿ ×100=195
20

Q5(c)

COMMODITY 2000 (BASE YEAR) 2005 (CURRENT YEAR)

q1p0 q 0 p0 q1 p 1 q 0 p1
 Price(K) Quantity Price(K) Quantity
(Kg) (Kg)

(p0) (q0) (p1) (q1)

A 15 15 22 12 180 225 264 330

B 20 5 27 4 80 100 108 135

C 4 10 7 5 20 40 35 70
Total ∑ q1 p 0=280
∑ q0 p 0=365
∑ q1 p 1=407∑ q0 p 1=535

i. Using the table above;

'
Laspeyr e s price index number=
∑ q 1 p0 ×100= 280 × 100=76.71
∑ q 0 p0 365

ii.
'
Paasch e s price index number=
∑ q 1 p1 ×100= 407 ×100=76.07
∑ q 0 p1 535

Q5(d)

Year Production(tons) 5-yearly moving total (in ‘000 Trend value ( Short-term
tons) 5− yearly moving average total
fluctuation
¿
5 ( production−trend value)

197 105,000 - - -
1 107,000 - - -
197 109,000 105+107+109+112+114=547 109,400 -400
2 112,000 107+109+112+114+116=558 111,600 400
197 114,000 109+112+114+116+118=569 113,800 200
3 116,000 112+114+116+118+121=581 116,200 -200
197 118,000 114+116+118+121+123=592 118,400 -400
4 121,000 116+118+121+123+124=602 120,400 600
197 123,000 118+121+123+124+125=611 122,200 800
5 124,000 121+123+124+125+127=620 124,000 0
197 125,000 123+124+125+127+129=628 125,600 -600
6 127,000 - -
197 129,000 - -
7
197
8
197
9
198
0
198
1
198
2
198
3