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Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Thank You sir,
I got all 8 out of 8 correct answers.
@Mr. good morning, and thanks so much for the excellent job you are doing. I observe that the formula you used for determining the price index for 2011 in question 2 does not tally with either the Laspeyere or Passche index formulas. Using Laspeyere for example the formula should have been (PnQo/PoQo, and the answer would have been 152) but you used (PnQo/PoQn). Kindly explain why this is so, please.
The answer is correct and has used the standard Laspeyre formula.
The cost of 10,000 kg in 2008 was $25,0000
The cost of 10,000 kg in 2011 would have been 10,000/12,000 x $38,000 = $31,667
The price index is 31,667/25,000 = 127
Thank you Sir John, splendid job as usual. this really helped.
Great 馃檪
Hello, I do not understand how question 3 was solved. Can you please help? Many thanks
could you explain how did you get -7.6? please.
I assume you are asking about question 4.
As I explain in my free lectures on this, the seasonal variations must add up to 0.
5.8 – 8.4 + 10.2 = + 7.6
Therefore for the total of all 4 to be zero, the missing one must be – 7.6.
Have you watched my free lectures on forecasting?