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If ∑p0q0 = 150, ∑p0q1 = 250, ∑p1q1 = 375 and P01(L) = 140. Find P01(M-E) - Mathematics and Statistics

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Question

If `sum"p"_0"q"_0` = 150, `sum"p"_0"q"_1` = 250, `sum"p"_1"q"_1` = 375 and P01(L) = 140. Find P01(M-E)

Sum
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Solution

Given, `sum"p"_0"q"_0` = 150, `sum"p"_0"q"_1` = 250, `sum"p"_1"q"_1` = 375 and P01(L) = 140

P01(L) = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100`

140 = `(sum"p"_1"q"_0)/150 xx 100`

`sum"p"_1"q"_0 = (140 xx 150)/100` = 210

P01(M-E) = `(sum"p"_1"q"_0 + sum"p"_1"q"_1)/(sum"p"_0"q"_0 + sum"p"_0"q"_1) xx 100`

= `(210 + 375)/(150 + 250) xx 100`

= `585/400 xx 100`

= 146.25

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Construction of Index Numbers - Weighted Aggregate Method
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Chapter 2.5: Index Numbers - Q.4

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