The average weekly stock prices of overseas trading, inc., a U.S. based multinational company, can be estimated from stock-price movements of its Asian and European subsidiaries for the previous week. The average weekly price and the number of shares traded for the Asian and Europe subsidiaries are given for the weeks in October 1993:
|
Average weekly
Price
|
Shared traded (thousands)
|
|
Week starting
|
Asian European
|
Asian European
|
|
October 4
|
$35 $32
|
1,020 2,000
|
|
October 11
|
36.50 33.00
|
1,200 2,500
|
|
October 18
|
36.00 31.00
|
1,500 2,800
|
|
October 25
|
32.50 32.50
|
1,300 2,200
|
a. Compute the stock-price index for the overseas trading inc. using the weighted arithmetic mean of relatives index with October 4 = 100, using base-period weights.
b. Compute a price index by the weighted aggregate method with October 4 = 100, using base period weights.