Maharashtra State BoardHSC Commerce 12th Board Exam
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Solve the following problem : Calculate Laspeyre’s and Paasche’s Price Index Number for the following data. - Mathematics and Statistics

Sum

Solve the following problem :

Calculate Laspeyre’s and Paasche’s Price Index Number for the following data.

Commodity Base year Current year
  Price
p0
Quantity
q0
price
p1
Quantity
q1
A 20 18 30 15
B 25 8 28 5
C 32 5 40 7
D 12 10 18 10
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Solution

Commodity Base Year Current Year p0q0 p1q0 p0q1 p1q1
  p0 q0 p1 q1        
A 20 18 30 15 360 540 300 450
B 25 8 28 5 200 224 125 140
C 32 5 40 7 160 200 224 280
D 12 10 18 10 120 180 120 180
Total 840 1144 769 1050

From the table,
`sum"p"_0"q"_0 = 840, sum"p"_1"q"_0 = 1144`,

`sum"p"_0"q"_1 = 769, sum"p"_1"q"_1 = 1050`
Laspeyre's Price Index Number:

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

= `(1144)/(840) xx 100`

= 136.19
Paasche's Price Index Number:

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

= `(1050)/(769) xx 100`

= 136.54

  Is there an error in this question or solution?
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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 4.05 | Page 92
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