HSC 2009 Q (1 Viewer)

[krypticlemonjuice]

How would you do this question?

(a). The answer is food

 

[gazzaboy]

Assuming a base year of 100, then food inflation rate is 20%, housing inflation rate is 10% and the health inflation rate is 50%. However, since they are differently weighted, the contribution of food is 15% × 20% = 3%, contribution of housing is 20% × 10% = 2% and contribution of health is 5% × 50% = 2.5%. The highest contribution is therefore food.

 

[krypticlemonjuice]

Assuming a base year of 100, then food inflation rate is 20%, housing inflation rate is 10% and the health inflation rate is 50%. However, since they are differently weighted, the contribution of food is 15% × 20% = 3%, contribution of housing is 20% × 10% = 2% and contribution of health is 5% × 50% = 2.5%. The highest contribution is therefore food.

Ohhhh ok thank you, so base year should always be assumed as 100?

 

[mmmmmmmmaaaaaaa]

Ohhhh ok thank you, so base year should always be assumed as 100?

yes