Index

more44

I am revising my pev using pass papers, could someone explain the calculation for the index question task1.3 on dec 09? I know how to do the first two parts

The following information has been gathered on the price of Robusta beans.
Cost per 1,000 kg of beans Sept 09-£1,200 Oct 09-£1,600 Nov 09-£1,500

An estimate of the seasonal variation in the price per month is given below.
Seasonal variations Sept 09-(£200) Oct 09-£100 Nov 09-(£100)
Task 1.3 (15 minutes)

(a)Calculate the underlying cost per 1,000 kilograms for the period Sep to Nov 2009.

(b)Calculate the forecast cost per 1,000 kilograms of beans for the months of Dec 2009, Jan and Feb 2010. Use the following estimates of seasonal variation and assume that the trend in (a) above continues.
Seasonal variations Dec 09-£100 Jan 10-(£100) Feb 10-£150

(c)Using March 2009 as the base month, when the cost was £1 per kilogram, convert the cost per kilogram for Dec 09, Jan and Feb 2010 to index numbers.

Newbie

reply

as it understand it you adjust the cost for seasonal variation to obtain the trend (300/3=100 units each month) you then continue the trend on this basis and adjust for the predicted seasonal variation, index numbers are basically the trend divided by ten.

more44

thanks for your help

more44

Gearing

There are two ways to calculate gearing the one i know is Longterm or shorterm loan divide by net asset. could you please let me know the other way to calculate gearing