1) Compute a simple index for the revenue of Thompson. Use 2004 as the base peri
ID: 2759922 • Letter: 1
Question
1) Compute a simple index for the revenue of Thompson. Use 2004 as the base period. What can you conclude about the change in revenue over the period?
2) Compute a simple index for the revenue of Thompson using the period 2004–06 as the base. What can you conclude about the change in revenue over the period?
3) Compute a simple index for the number of employees for Thompson. Use 2004 as the base period. What can you conclude about the change in the number of employees over the period?
4) Compute a simple index for the number of employees for Thompson using the period 2004–06 as the base. What can you conclude about the change in the number of employees over the period?
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1) Compute a simple index for the revenue of Thompson. Use 2004 as the base period. What can you conclude about the change in revenue over the period?
2) Compute a simple index for the revenue of Thompson using the period 2004–06 as the base. What can you conclude about the change in revenue over the period?
3) Compute a simple index for the number of employees for Thompson. Use 2004 as the base period. What can you conclude about the change in the number of employees over the period?
4) Compute a simple index for the number of employees for Thompson using the period 2004–06 as the base. What can you conclude about the change in the number of employees over the period?
Explanation / Answer
1.
Year
Revenue ($ millions)
Index
2004
134.3
100
2005
148
110.20
2006
163.4
121.67
2007
172.5
128.44
2008
182.5
135.89
2009
153.7
114.45
2010
148.9
110.87
2011
146.5
109.08
2012
146.7
109.23
2013
146
108.71
2014
147.2
109.61
2015
155.8
116.01
2.
Base year revenue = ($134.30 + $148 + $163.40) / 3 = $148.57 million
Year
Revenue ($ millions)
Index
2004
134.3
100
2005
148
2006
163.4
2007
172.5
116.11
2008
182.5
122.84
2009
153.7
103.45
2010
148.9
100.22
2011
146.5
98.61
2012
146.7
98.74
2013
146
98.27
2014
147.2
99.08
2015
155.8
104.87
3.
Year
Employees (000)
Index
2004
305
100
2005
307
100.66
2006
316
103.61
2007
319
104.59
2008
323
105.90
2009
304
99.67
2010
287
94.10
2011
305
100.00
2012
307
100.66
2013
305
100.00
2014
309
101.31
2015
318
104.26
4.
Base year value = (305 + 307 + 316)/3 = 309.33
Year
Employees (000)
Index
2004
305
100
2005
307
2006
316
2007
319
103.13
2008
323
104.42
2009
304
98.28
2010
287
92.78
2011
305
98.60
2012
307
99.25
2013
305
98.60
2014
309
99.89
2015
318
102.80
Year
Revenue ($ millions)
Index
2004
134.3
100
2005
148
110.20
2006
163.4
121.67
2007
172.5
128.44
2008
182.5
135.89
2009
153.7
114.45
2010
148.9
110.87
2011
146.5
109.08
2012
146.7
109.23
2013
146
108.71
2014
147.2
109.61
2015
155.8
116.01
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