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

Answer:

Step-by-step explanation:

S.NO    QUATERS       PRICE ($)                 PRICE RELATIVES

                                                           $I = \frac{q_i}{q_4} *100$

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 $= \frac{\sum I}{n}$

                            $= \frac{104.51+108.01+114.51+100}{4}$

                                       = 106.75

b) percentage point rise

$for q_1 = \frac{q_2 -q_1}{q_1}*100$

          $= \frac{108.01-104.51}{104.51}$

          = 3.34%

$for q_2 = \frac{q_3 -q_2}{q_2}$

      $= \frac{114.51-108.01}{108.01} *100$

          = 6.01%

$for q_3 = \frac{q_4 -q_3}{q_3}$

         $= \frac{100-114.51}{114.51} *100$

          = 12.67%