Price Indexes - required or not?

CFA Level I Economics
#1

Hi, I am a little bit confused about unclear requirements on this exam.

According to Schweser: “The LOS does not require you to calculate these indexes. We show these examples to illustrate how substitution of goods by consumers can affect index values.”

CFA: Mock B PM 42 - calculate Paasche Index

Could you guys explain me is it required or not? :angry:

#2

CFA Institute is quite liberal in its interpretation of its own command words, its official definitions notwithstanding.

In short, Explain can mean Calculate.

#3

Thx bro! :+1:

#4

I’ve done 2 mocks (AM and PM) and each of them requires calculation of either Layperes or Paasche Index. Fisher index calculation is probably not out of the scope either.