Link relatives for electrical goods and interpret

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Reference no: EM13990181

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.

Reference no: EM13990181

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