Calculate a laspeyres cost-of-living index

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Roberto is a senior citizen who consumes food and healthcare. When he retired in 2002, he consumed 90 meals and 3 medical checkups per month. Suppose in 2002 that the price of a meal was $10 and the price of a medical checkup was $64. However, in 2012, the price of a meal is $11 and the price of a medical checkup is $277. As a result, Roberto consumes 100 meals and 2 medical checkups per month.

Calculate a Laspeyres cost-of-living index for Roberto using 100 as the base in 2002. In particular, the Laspeyres index for 2012 is ___. (Enter you response to two decimal places.)

The Laspeyres index suggests inflation has been ___% over the 10-year period from 2002 to 2012. (Enter your response to two decimal places.)

Next, calculate a Paasche cost-of-living index for Roberto using 100 as the base in 2002. In particular, the Paasche index for 2012 is ___. (Enter your response to two decimal places.)

The Paasche index suggests inflation has been ___%. (Enter your response to two decimal places.)

Reference no: EM13995823

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Calculate a laspeyres cost-of-living index : Roberto is a senior citizen who consumes food and healthcare. When he retired in 2002, he consumed 90 meals and 3 medical checkups per month. Suppose in 2002 that the price of a meal was $10 and the price of a medical checkup was $64. Calculate a Las..
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