Question

After that cheese and wine, your weighted index will be ~20 stone... Another formula here which, guess what, you need to learn off by heart. Once you have, take a stab at these...

In 2018, the publishing company above spent £20 on cheese, £325 on wine, £35 on biscuits and £25 on crisps. Use these values and the table in the example to find the weighted index number for 2018 with the base year 2014.
CPI is a chain based index number. The table shows the annual percentage change in CPI for a number of years.
a) Calculate the chain based index numbers missing from the table.
b) Regina's water bill is linked to this index. Her annual bill for 2015 was £444. Determine what her bill was for 2017.

Answer 1

To calculate the weighted index number for 2018, we need the weights for each item which are not provided in the given information.

Step-by-step explanation:

The weighted index number for 2018 can be calculated using the formula:

Index number = (Price in 2018 / Price in base year) * 100

Using the given values, we can calculate the index number for cheese, wine, biscuits, and crisps in 2018:

1. Cheese index number = (£20 / £20) * 100 = 100
2. Wine index number = (£325 / £20) * 100 = 1625
3. Biscuits index number = (£35 / £20) * 100 = 175
4. Crisps index number = (£25 / £20) * 100 = 125

To find the weighted index number for 2018, we need the weights for each item, which are not provided. Without the weights, we cannot accurately calculate the weighted index number.