Homework SourseData for selected fruits purchased at wholesale prices for 2
Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown below.
What is the value index?
178.64
112.10
108.76
111.09
| 2005 | 2009 | |||
| Price | Quantity | Price | Quantity | |
| Red Delicious Apples/lb. | $0.997 | 1,052 | $1.140 | 2,158 |
| Navel Oranges/lb. | $0.924 | 339 | $1.010 | 401 |
| Bananas/lb. | $0.508 | 426 | $0.596 | 392 |
| Tomatoes/lbs. | $1.900 | 213 | $2.000 | 222 |
Solution
Value Index is sum = (price of current year*quantity of current year)/(price of previous year*quantity of previous year)
Now we will calculate p1q1 & p0q0
p1q1=price*quantity of 2009. p0q0 = price *quantity of 2005
2460.12. 1048.844
405.01 313.236
233.632. 216.408
444. 404.7
Sum = 3542.762. Sum = 1983.188
Hence value index =( 3542.762/1983.188)*100= 1.7864*100= 178.64
