Question

Solve the following problem :

If Laspeyre’s and Dorbish’s Price Index Numbers are 150.2 and 152.8 respectively, find Paasche’s Price Index Number.

Answer 1

Given, P₀₁(L) = 150.2, P₀₁(D-B) = 152.8
Dorbish-Bowley’s Price Index Number:

P₀₁(D-B) = `("P"_01("L") + "P"_01("P"))/(2)`

∴ 152.8 = `(150.2 + "P"_01("P"))/(2)`

∴ 305.6 = 150.2 6 + P₀₁(P)
∴ P₀₁(P) = 305.6 – 150.2 = 155.4