An index of two store items for 2007 based on 2004 is to be constructed. The information for the prices and quantities for both years is given below. Use 2004 as the base period and 100 as the base value.
2004 2007
Item Price ($) Quantity Price ($) Quantity
Item 1 83 524 93 547
Item 2 42 1248 50 1336
For full marks your answer should be accurate to at least one decimal place.
Determine the aggregate price index for the two years.