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Anonymous asked in Science & MathematicsMathematics · 1 month ago

Chain index question math ( Paasche and Laspeyres)?


How do the chain index I0.2 ^ KL, I0.2 ^ KP and I0.2 ^ KF relate to each other if the following occurs between years 1 and 2: "The price of milk increases by 1 krona, and the quantity of bread increases by 1 unit"? Tip: I0,2KF = (I0,2 ^ KL * I0,2 ^ KP) ^ 1/2, ie a geometric mean of Paasche and Laspeyres.

A) I0.2 ^ KP <I0.2 ^ KF <I0.2 ^ KL

B) I0.2 ^ KF <I0.2 ^ KP <I0.2 ^ KL

C) I0.2 ^ KL = I0.2 ^ KP = I0.2 ^ KF

D) I0.2 ^ KL <I0.2 ^ KF <I0.2 ^ KP

E) I0.2 ^ KF <I0.2 ^ KL <I0.2 ^ KP

F) I0.2 ^ KP <I0.2 ^ KL <I0.2 ^ KF

G) I0.2 ^ KL <I0.2 ^ KP <I0.2 ^ KF

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