# Solve the following problem : Calculate Dorbish-Bowley’s Price Index Number for the following data. - Mathematics and Statistics

Sum

Solve the following problem :

Calculate Dorbish-Bowley’s Price Index Number for the following data.

 Commodity Base Year Current Year Price p0 Quantity q0 Price p1 Quantity q1 I 8 30 11 28 II 9 25 12 22 III 10 15 13 11

#### Solution

 Commodity Base Year Current Year p0q0 p1q0 p0q1 p1q1 p0 q0 p1 q1 I 8 30 11 28 240 330 224 308 II 9 25 12 22 225 300 198 264 III 10 15 13 11 150 195 110 143 Total – – – – 615 825 532 715

From the table,
sum"p"_0"q"_0 = 615, sum"p"_1'q"_0 = 825,

sum"p"_0"q"_1 = 532, sum"p"_1"q"_1 = 715

Dorbish-Bowley’s Price Index Number:

P01(D–B) = ((sum"p"_1"q"_0)/(sum"p"_0"q"_0) + (sum"p"_1"q"_1)/(sum"p"_0"q"_1))/(2) xx 100

= ((825)/(615) + (715)/(532))/(2) xx 100

= 134.27

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#### APPEARS IN

Balbharati Mathematics and Statistics 2 (Commerce) 12th Standard HSC Maharashtra State Board
Chapter 5 Index Numbers
Miscellaneous Exercise 5 | Q 4.06 | Page 92