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Define family budget method - Business Mathematics and Statistics

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प्रश्न

Define family budget method

योग
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उत्तर

In this method, the weights are calculated by multiplying prices and quantity of the base year.

i.e. V = `sum"p"_0"q"_0`.

The formula is given by,

Cost of Living Index Number = `(sum"pv")/(sum"v")`

Where P = `"p"_1/"p"_0 xx 100` is the price relative.

V = `sum"p"_0"q"_0` is the value relative.

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अध्याय 9: Applied Statistics - Exercise 9.2 [पृष्ठ २१९]

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सामाचीर कलवी Business Mathematics and Statistics [English] Class 12 TN Board
अध्याय 9 Applied Statistics
Exercise 9.2 | Q 12 | पृष्ठ २१९

संबंधित प्रश्न

Statements that are incorrect in relation to index numbers:

  1. An index number is a geographical tool.
  2. Index numbers measure changes in air pressure.
  3. Index numbers measure relative changes in an economic variable.
  4. Index numbers are specialized averages.

Complete the Correlation:

__________ : Single variable :: Composite index : Group of variables


Index number which is computed from a single variable called is a ______.


State the uses of Index Number


Define Laspeyre’s price index number


Define Time Reversal Test


Calculate the cost of living index by aggregate expenditure method:

Commodity Weight
2010
Price (Rs.)
2010 2015
P 80 22 25
Q 30 30 45
R 25 42 50
S 40 25 35
T 50 36 52

Choose the correct alternative:

Consumer price index are obtained by:


Read the given passage and answer the questions:

Index Number is a technique of measuring changes in a variable or group of related variables with reference to time, geographical location and other characteristics.

Index Number is very useful for economists, farmers, traders, government, educationalists and trade union leaders for planning and implementing the plans according to their sector.

The scope of index number is not limited to only one subject but it extends to many subjects such as Economics, Educational science, Psychology, History, Sociology, Geography etc.

While framing index number its objective must be determined. To attain the objective the information is collected in various ways and this information is used for comparing two different time periods. For this purpose, the base year’s index is assumed as 100 and accordingly the value of the current year is calculated.

Laspeyre, Paasche and Fisher have suggested different methods for constructing index numbers.

  1. Explain the meaning of Index Number.
  2. To whom the Index Number is useful?
  3. Express your opinion about the given passage.

Find the odd word out:

Features of Index Number:


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