a) What is an index number? Explain two areas where index numbers are applied. [2 Marks] b) If the..

a) What is an index number? Explain two areas where index numbers are applied. [2 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. [2 Marks]c) Define the term “time series” and give an example [2 Marks]

d) What is the aim of time series analysis [2 Marks]

e) By giving relevant examples briefly explain the components of a time series.

[6 Marks]

f) The number of new stereo systems sold by an electrical store each quarter for four years is shown below.

year	quarters	sales
2000	1 2 3 4	130 105 85 120
2001	1 2 3	150 115 95
	4	140
2002	1 2 3 4	165 120 100 140
2003	1 2 3 4	180 140 110 160

Calculate a four point moving average tread.[6 Marks]