Question

amir gupta’s car showroom is giving special offer on one model. their advertised price for this model is four consecutive quarters was $10450 , $10800, $11450, and $9999. use the fourth quarters as a base period. calculate the price index and percentage point rise between each quarters

Answer 1

Explanation:

S.NO QUATERS PRICE ($) PRICE RELATIVES

`I = (q_i)/(q_4) *100`

1 q_1 10450 104.51

2 q_2 10800 108.01

3 q_3 11450 114.51

4 q_2 9999 100.00

Price Index is given as
`= (\sum I)/(n)`

`= (104.51+108.01+114.51+100)/(4)`

= 106.75

b) percentage point rise

`for q_1 = (q_2 -q_1)/(q_1)*100`

`= (108.01-104.51)/(104.51)`

= 3.34%

`for q_2 = (q_3 -q_2)/(q_2)`

`= (114.51-108.01)/(108.01) *100`

= 6.01%

`for q_3 = (q_4 -q_3)/(q_3)`

`= (100-114.51)/(114.51) *100`

= 12.67%