FNPF question

Terdoo

Can someone help with index question pls, I have being struggling with this price index and can't seem to get the answer

jan feb mar
Total 64500 71500 92050

Qty 5000kg 5500kg 7000

price Index

insert the price index for jan and march
How do you calculate this? Thanks in advance

Rinske

Hiya,

As you need to add Jan and March, I'm assuming that Feb is 100.

To get there, calculate for each one the price per kg/ unit/ whatever small amount. (Total/ no of kgs)

Jan...... 12.90
Feb...... 13.00
Mar...... 13.15

Now in order to create yourself index figures from these, you need to know the base period or price and set this to 100%. The other years will be indexed based on this one, by dividing the unit price through the base price times 100%.

The calculation is "unit price of year you want to calculate" divided by "the unit price of the base year" times "the index figure of the base year".
You can calculate any year this way, and based on any index figure, so you don't have to worry about finding that 100% if you don't know it.

If February's index is the base, we set that to be 100.
January would then be 12.90 / 13.00 * 100 = 99.23
March would then be 13.15 / 13.00 *100 = 101.15

If you get given that February has an index of say, 123.0 in the question, you would do the same calculations, only you replace the 100 with the given percentage of 123.0.

Does that help?

Cheers,
Rinske

Terdoo

Re Retail Price Index

Hi all
I have calculated it the way you did it but the answer is wrong, the answer they want is as below;
Jan Feb Mar
Total 64500 71500 92050

Qty 5000 5500 7000

Price index 258 260 263
Could anyone show calculation pls

Thanks in advance

Rinske

Same calculations as above, but possibly just a different index number somewhere.

Does it say in the question what the 100 index was or what the latest index figure with a unit price was?

12.90 / 13.00 * 260 = 258
13.15 / 13.00 * 260 = 263

Terdoo

Re;price index

Thank you so very much Rinske!