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An index of two store items for 2007 based on 2004 is to be

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An index of two store items for 2007 based on 2004 is to be constructed. The information for the prices and quantities for both years is given below. Use 2004 as the base period and 100 as the base value.

                                    2004                                       2007

Item                Price ($)         Quantity        Price ($)         Quantity

Item 1             83                    524                             93        547

Item 2             42                    1248                           50        1336

For full marks your answer should be accurate to at least one decimal place.

Determine the aggregate price index for the two years.

Reference no: EM13575340

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