A special-purpose index is to be designed to monitor the overall economy of the Southwest. Four key series were selected. After considerable deliberation it was decided to weight retail sales 20 percent, total bank deposits 10 percent, industrial production in the area 40 percent, and nonagricultural employment 30 percent. The data for 1996 and 2008 are: Year Retail Sales ($ millions) Bank Deposits ($ billions) Industrial Production (1990= 100) Employment 1996 1,159.0 87 110.6 1,214,000 2008 1,971.0 91 114.7 1,501,000 Construct a special-purpose index for 2008 using 1996 as the base period and interpret.
A special-purpose index is to be designed to monitor the overall economy of the Southwest. Four key series were selected. After considerable deliberation it was decided to weight retail sales 20 percent, total bank deposits 10 percent, industrial production in the area 40 percent, and nonagricultural employment 30 percent. The data for 1996 and 2008 are: Year Retail Sales ($ millions) Bank Deposits ($ billions) Industrial Production (1990= 100) Employment 1996 1,159.0 87 110.6 1,214,000 2008 1,971.0 91 114.7 1,501,000 Construct a special-purpose index for 2008 using 1996 as the base period and interpret.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.4E
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A special-purpose index is to be designed to monitor the overall economy of the Southwest. Four key series were selected. After considerable deliberation it was decided to weight retail sales 20 percent, total bank deposits 10 percent, industrial production in the area 40 percent, and nonagricultural employment 30 percent. The data for 1996 and 2008 are:
|
Year |
Retail Sales ($ millions) |
Bank Deposits ($ billions) |
Industrial Production (1990= 100) |
Employment |
|
1996 |
1,159.0 |
87 |
110.6 |
1,214,000 |
|
2008 |
1,971.0 |
91 |
114.7 |
1,501,000 |
Construct a special-purpose index for 2008 using 1996 as the base period and interpret.
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