# Given the following table, find Walsh’s Price Index Number by completing the activity. - Mathematics and Statistics

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Given the following table, find Walsh’s Price Index Number by completing the activity.

 Commodity p0 q0 p1 q1 q0q1 sqrt("q"_0"q"_1) p0sqrt("q"_0"q"_1) p1sqrt("q"_0"q"_1) I 20 9 30 4 36 square square 180 II 10 5 50 5 square 5 50 square III 40 8 10 2 16 square 160 square IV 30 4 20 1 square 2 square 40 Total – – – – 390 square

Walsh’s price Index Number is

P01(W) = square/(sum"p"_0sqrt("q"_0"q"_1)) xx 100

= 510/square xx 100

= square

#### Solution

 Commodity p0 q0 p1 q1 q0q1 sqrt("q"_0"q"_1) p0sqrt("q"_0"q"_1) p1sqrt("q"_0"q"_1) I 20 9 30 4 36 6 120 180 II 10 5 50 5 25 5 50 250 III 40 8 10 2 16 4 160 40 IV 30 4 20 1 4 2 60 40 Total – – – – 390 510

Walsh’s price Index Number is

P01(W) = (sum"p"_1sqrt("q"_0"q"_1))/(sum"p"_0sqrt("q"_0"q"_1)) xx 100

= 510/390 xx 100

= 130.77

Concept: Construction of Index Numbers - Weighted Aggregate Method
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Chapter 2.5: Index Numbers - Q.5
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