# 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

#### 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

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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