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If P01(L) = 90 and P01(P) = 40, find P01(D – B) and P01(F).

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Question

If P01(L) = 90 and P01(P) = 40, find P01(D – B) and P01(F).

Sum
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Solution

Given, P01(L) = 90 and P01(P) = 40

`"P"_01 ("D - B") = ("P"_01("L") + "P"_01 ("P"))/2`

`= (90 + 40)/2 = 130/2 = 65`

`"P"_01("F") = sqrt("P"_01 ("L") xx "P"_01 ("P"))`

`= sqrt(90 xx 40) = sqrt3600 = 60`

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Construction of Index Numbers - Weighted Aggregate Method
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Chapter 5: Index Numbers - Exercise 5.2 [Page 82]

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