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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
16-8. Consider the following median selling prices ($thousands) for homes in a community:
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a.    Determine a relative index for each type of advertisement using year 1 as the base year.
b.   Determine an unweighted aggregate index for the two types of advertisement.
c.    In year 1 the retailer spent 30% of the advertisement budget on radio advertising. Construct a Laspeyres index for the data.
d.   Using year 1 as the base, construct a Paasche index for the same data.
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Business Applications
Problems 16-10 through 16-13 refer to Gallup Construc- tion and Paving, a company whose primary business has been constructing homes in planned communities in the upper Midwest. The company has kept a record of the relative cost of labor and materials in its market areas for the last 11 years. These data are as follows:
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   Year      Hourly Wages ($)   Average Material Cost ($)                Â
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  10             411  Â
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a.    Use year 1 as a base year and construct a simple index number to show how the median selling price has increased.
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  2009                  34.20                               74,000                 Â
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CHAPTER 16  | Analyzing and Forecasting Time-Series Data                                                                                                         723
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