4. (a) The following shows the cost in Kenya Shillings and the total output in Kilogram for sugar
produced by a farmer
Cost 34 43 47 56 59 71 75 80 85 90
Output 13 17 22 28 31 34 33 37 36 39
Required:
(i) Fit a regression line of the cost on the output (2 marks)

(ii) Hence estimate the output when the cost is 40 (3 marks)
(iii) Calculate the coefficient of determination (3 marks)
(b) DOC Company produces and sells four types of electric appliances. The prices and quantities
in 2009 and 2010 are shown below:
Item 2009 2010
Price Quantity Price Quantity
Radio 100 20 120 15
Clock 200 40 250 25
Toaster 130 30 130 50
Hair dryer 225 10 250 10
Required:
(i) Calculate the Laspeyres price index (4 marks)
(ii) Paasche quantity index to measure the overall changes between 2009 and
2010 (3 marks)