Question: A certain company uses the components in the chart below in its production process. Prices and quantities for the components over three years are given also.

Component 2002 price 2002 number 2004 price 2004 number
Widget 5.20 338 5.50 370
Gadget 9.17 210 9.61 218
Thingamabob 6.43 283 7.08 326
Gidgemadigger 4.64 251 4.57 282

a. Find a simple aggregate price index for these components between 2002 and 2004.

b. Calculate a Laspeyre price index for these components between the two years.

c. Find the Paasche price index for these components relative to the two given years.

In each case show your answer to the nearest thousandth (3 decimal places).