Results 1 to 8 of 8

Math Help - Index Number related question...

  1. #1
    Newbie
    Joined
    Jun 2013
    From
    Malaysia
    Posts
    4

    Index Number related question...

    The sale values (output quantity multiplied by price) for four types of product of a company at current price and 1998 price arc as follows:



    (RM million)
    Sale value at current price
    Sale value at 1998 price
    Type of product
    1998
    2009
    2010
    2009
    2010
    A
    50
    120
    175
    100
    125
    B
    10
    30
    24
    25
    20
    C
    40
    40
    50
    20
    20
    D
    20
    50
    90
    40
    60
    Total
    120
    240
    339
    185
    225

    Calculate:

    (a) the Laspeyres quantity index for the year 2010 by using 1998 as the base year, [2 marks]

    (b) the Laspeyres quantity index for the year 2010 by using 2009 as the base year, [3 marks]

    (c) the percentage change in the output quantity of the company from 2009 to 2010. [1 marks]

    Just in case you want to know, this is one of the question of STPM Maths S 2011.

    (a) 225/120 * 100 = 187.5

    (b) No clue at all...

    (c) Since (c) is related to (b)...
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Sep 2012
    From
    Australia
    Posts
    3,607
    Thanks
    591

    Re: Index Number related question...

    Hey ystiang.

    What is the definition for the Laspeyres quantity index?
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Newbie
    Joined
    Jun 2013
    From
    Malaysia
    Posts
    4

    Re: Index Number related question...

    Quote Originally Posted by chiro View Post
    Hey ystiang.

    What is the definition for the Laspeyres quantity index?
    Laspeyres quantity index: Lq = (q_n p_0)/(q_0 p_0 )100

    where,
    q_n : quantity in current period
    q_0 : quantity in base period
    p_0 : price in base period

    But the question twisted like... ._.
    Follow Math Help Forum on Facebook and Google+

  4. #4
    MHF Contributor
    Joined
    Sep 2012
    From
    Australia
    Posts
    3,607
    Thanks
    591

    Re: Index Number related question...

    You have two p_0 terms: is one of them meant to be different or should they be cancelled out?
    Follow Math Help Forum on Facebook and Google+

  5. #5
    Newbie
    Joined
    Jun 2013
    From
    Malaysia
    Posts
    4

    Re: Index Number related question...

    Quote Originally Posted by chiro View Post
    You have two p_0 terms: is one of them meant to be different or should they be cancelled out?
    Oops, sorry I forgot the sum... Should be Lq = ∑(q_n p_0)/∑(q_0 p_0 )100
    Follow Math Help Forum on Facebook and Google+

  6. #6
    MHF Contributor
    Joined
    Sep 2012
    From
    Australia
    Posts
    3,607
    Thanks
    591

    Re: Index Number related question...

    So given your formula, you have the p_x*q_x as 120 30 40 50. Remember that the total sales is the cost_per_item * number of items.
    Follow Math Help Forum on Facebook and Google+

  7. #7
    Newbie
    Joined
    Jun 2013
    From
    Malaysia
    Posts
    4

    Re: Index Number related question...

    No, it's sum of, (q_n p_0)/(q_0 p_0 )100,
    you can't simplify p_0...

    Usually Index Numbers' question directly give the price and quantity of current and base period...
    We just need to remember the formula and apply them, BUT this question twisted seriously...
    Follow Math Help Forum on Facebook and Google+

  8. #8
    MHF Contributor
    Joined
    Sep 2012
    From
    Australia
    Posts
    3,607
    Thanks
    591

    Re: Index Number related question...

    Isn't q_0 * p_0 just the sales volume for base-line?
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. [SOLVED] a question about normal subgroups and index.
    Posted in the Advanced Algebra Forum
    Replies: 8
    Last Post: August 1st 2011, 08:37 PM
  2. Index Question
    Posted in the Algebra Forum
    Replies: 2
    Last Post: September 4th 2010, 07:38 AM
  3. Index form with a prime number base?
    Posted in the Algebra Forum
    Replies: 4
    Last Post: July 20th 2010, 03:17 PM
  4. Revision related number theory question(s)
    Posted in the Number Theory Forum
    Replies: 3
    Last Post: January 15th 2010, 07:57 AM
  5. Replies: 2
    Last Post: November 13th 2008, 12:35 AM

Search Tags


/mathhelpforum @mathhelpforum