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State whether the following statement is True or False: ∑p1q1∑p0q1×100 is Paasche’s Price Index Number - Mathematics and Statistics

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Question

State whether the following statement is True or False:

`(sum"p"_1"q"_1)/(sum"p"_0"q"_1) xx 100` is Paasche’s Price Index Number

Options

  • True

  • False

MCQ
True or False
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Solution

True

shaalaa.com
Construction of Index Numbers - Weighted Aggregate Method
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Chapter 2.5: Index Numbers - Q.3

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Commodity Base Year Current Year
  Price
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p1
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A 3 x 2 5
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Solve the following problem:

If find x is Walsh’s Price Index Number is 150 for the following data

Commodity Base Year Current Year
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p1
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Given that Laspeyre’s and Paasche’s Price Index Numbers are 25 and 16 respectively, find Dorbish-Bowley’s and Fisher’s Price Index Number.


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Given that `sum "p"_1"q"_1 = 300, sum "p"_0"q"_1 = 320, sum "p"_0"q"_0` = 120, and Marshall- Edgeworth’s Price Index Number is 120, find `sum"p"_1"q"_0` and Paasche’s Price Index Number.


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II 20 2 25 8
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Solution: P01(L) = P01(P)

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

`(20 + 5x)/square xx 100 = square/14 xx 100`

∴ x = `square`


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