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Question
If P01(L) = 40 and P01(P) = 90, find P01(D-B) and P01(F).
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Solution
Given, P01(L) = 40 and P01(P) = 90
Dorbish-Bowley’s Price Index Number
P01(D-B) = `("P"_01("L") + "P"_01("P"))/2`
= `(40 + 90)/2`
= `130/2`
= 65
Fisher’s Price Index Number
P01(F) = `sqrt("P"_01("L") xx "P"_01("P"))`
= `sqrt(40 xx 90)`
= `sqrt(3600)`
= 60`
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| Commodity | Base Year | Current Year | ||
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| I | 8 | 30 | 12 | 25 |
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| p0 | q0 | p1 | q1 | |||||
| I | 8 | 30 | 12 | 25 | 360 | 240 | 300 | 200 |
| II | 10 | 42 | 20 | 16 | 840 | 420 | 320 | 160 |
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∴ P01(L) = `square`
Paasche 's Price Index Number:
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∴ P01(P) = `square`
