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The composite price indexes for electrical goods (e.g. kettles, toasters, refrigerators, stoves, microwave ovens, blenders) for the period 2004 to 2010 are shown in the following table:
2004
2005
2006
2007
2008
2009
2010
Composite price index (electrical goods)
88
96
100
109
114
112
115
Give all calculations correct to one decimal place.
(a) Reset the base period index for electrical goods from 2006 to 2009. Interpret the revised index number series.
(b) Calculate the link relatives for electrical goods and interpret.
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