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State whether the following statement is True or False: [∑p1q1∑p0q1+∑q0q1∑(p0+p1)]×100 is Fisher’s Price Index Number.

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Question

State whether the following statement is True or False:

`[sqrt((sum"p"_1"q"_1)/(sum"p"_0"q"_1)) + (sumsqrt("q"_0"q"_1))/(sum("p"_0 + "p"_1))] xx 100` is Fisher’s Price Index Number.

Options

  • True

  • False

MCQ
True or False
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Solution

False

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

RELATED QUESTIONS

Given that ∑p0q0 = 220, ∑p0q1 = 380, ∑p1q1 = 350 and Marshall-Edgeworth’s Price Index Number is 150, find Laspeyre’s Price Index Number.


Find x in the following table if Laspeyre’s and Paasche’s Price Index Numbers are equal.

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If Dorbish-Bowley's and Fisher's Price Index Numbers are 5 and 4, respectively, then find Laspeyre's and Paasche's Price Index Numbers.


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Fisher’s Price Number is given by


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Paasche’s Price Index Number is given by _______.


State whether the following is True or False :

`sum("p"_1"q"_1)/("p"_0"q"_1)` is Laspeyre’s Price Index Number.


State whether the following is True or False :

`(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx (sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100` is Dorbish-Bowley’s Price Index Number.


State whether the following is True or False :

`(1)/(2)[sqrt((sum"p"_1"q"_0)/(sum"p"_0"q"_0)) + sqrt("p"_1"q"_1)/(sqrt("p"_0"q"_1))] xx 100` is Fisher’s Price Index Number.


State whether the following is True or False :

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


Solve the following problem :

Find x if Paasche’s Price Index Number is 140 for the following data.

Commodity Base Year Current Year
  Price
p0
Quantity
q0
Price
p1
Quantity
q1
A 20 8 40 7
B 50 10 60 10
C 40 15 60 x
D 12 15 15 15

Solve the following problem :

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.


Choose the correct alternative:

Dorbish–Bowley’s Price Index Number is


Choose the correct alternative:

Fisher’s Price Index Number is


Marshall-Edgeworth's Price Index Number is given by ______


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


Calculate
a) Laspeyre’s
b) Passche’s
c) Dorbish-Bowley’s Price Index Numbers for following data.

Commodity Base Year Current Year
Price Quantity Price Quantity
A 10 9 50 8
B 20 5 60 4
C 30 7 70 3
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Calculate Walsh’s price Index Number for the following data.

Commodity Base Year Current Year
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I 10 12 40 3
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Commodity Base Year Current Year
Price Quantity Price Quantity
A 1 10 2 5
B 1 12

If `sum"p"_0"q"_0` = 150, `sum"p"_0"q"_1` = 250, `sum"p"_1"q"_1` = 375 and P01(L) = 140. Find P01(M-E)


State whether the following statement is true or false:

Dorbish-Bowley's Price Index Number is the square root of the product of Laspeyre's and Paasche's Index Numbers.


If P01 (L) = 121, P01 (P) = 100, then P01 (F) = ______.


`sqrt((sump_1q_0)/(sump_0q_0)) xx sqrt((sump_1q_1)/(sump_0q_1)) xx 100`


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Commodity Base year Current year
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P 12 20 18 24
Q 14 12 21 16
R 8 10 12 18
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In the following table, Laspeyre's and Paasche's Price Index Numbers are equal. Complete the following activity to find x :

Commodity Base Year Current year
Price Quantity Price Quantity
A 2 10 2 5
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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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