Construct a laspeyers index using 1988 as a base year what

Assignment Help Basic Statistics

Reference no: EM13622603

A security analyst wishes to construct an index to reflect the changes in the price of five stocks in a certain portfolio. The following figures represent the average price and numbers of shares purchased for each stock for 1988-1990:

	1988	1989	1990
Stock	Average Shares Price Purchased	Average Shares Price Purchased	Average Shares Price Purchased
A	35 110	45 210	40 215
B	55 210	50 160	55 115
C	65 160	85 260	75 115
D	50 310	55 260	60 215
E	25 200	30 210	40 310

a. Construct an unweighted aggregate index using 1988 as a base year. What are the disadvantages of this type of index?

b. Construct a Laspeyers index using 1988 as a base year. What are the disadvantages of thus type of index?

c. Construct a Paasche index using 1988 as a reference base year. What are the disadvantages of this type of index?

Reference no: EM13622603

Questions Cloud

The snappy service gas station manager is thinking about a : the snappy service gas station manager is thinking about a promotion that she hopes will bring in more business to the

What proportion of the time is he up because of his dog : a man finds that two things cause him to wake up at night- his cat or his dog. if it is due to his cat the time to fall

A manufacturer claims that its televisions have an average : a manufacturer claims that its televisions have an average lifetime of at least five years 60 months with a population

Suppose you know that the distribution of sample : suppose you know that the distribution of sample proportions of the residents of one town over 70 years old in samples

Construct a laspeyers index using 1988 as a base year what : a security analyst wishes to construct an index to reflect the changes in the price of five stocks in a certain

The average magnesium concentration in ground water around : the average magnesium concentration in ground water around metro city is u65.6 parts per millionppm with a standard

The annual cost of storing each item is estimated at 80 : the xyz manufacturing company makes a special metal bracket that costs 10 per unit.xyz makes 20000 units per day on its

A research team conducted a study showing that : a research team conducted a study showing that approximately 25 of all businessmen who wear ties wear them so tightly

Among a random sample of 150 employees of a particular : among a random sample of 150 employees of a particular company the mean commute distance is 25.5 miles. this mean lies

User Account

All Pages