a. Define an index number and explain two areas where index numbers are applied. (3 marks) b. If the

a. Define an index number and explain two areas where index numbers are applied.

(3 marks)

b. If the Fisher’s price index is 109.91 and the Paasche’s price index is 110.6, calculate the

Laspeyre’s index. (2marks ) c. (i) Define the term “time series” and give an example (2marks ) (ii) What is the aim of time series analysis (2 marks )

( iii)By giving relevant examples briefly explain the components of a time series. (4 marks )

d.The table below identifies the probability that a computer network will be inoperative and the indicated number of periods per week during the initial installation phase for the network.

Calculate

i. Calculate the value of a.(1mark )

ii. The expected number of times per week that the network is inoperative and

(2marks )

iii. The standard deviation for the variable.(4 marks )