State whether the following statement is True or False: Walsh’s Price Index Number is given by ∑p1q0q1∑p0q0q1×100 - Mathematics and Statistics

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MCQ
True or False

State whether the following statement is True or False:

Walsh’s Price Index Number is given by `(sum"p"_1sqrt("q"_0"q"_1))/(sum"p"_0sqrt("q"_0"q"_1)) xx 100`

Options

  • True

  • False

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Solution

True

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

RELATED QUESTIONS

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

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

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.


Choose the correct alternative :

The price Index Number by Weighted Aggregate Method is given by ______.


Dorbish-Bowley’s Price Index Number is given by ______.


Choose the correct alternative :

Marshall-Edgeworth’s Price Index Number is given by


Choose the correct alternative :

Walsh’s Price Index Number is given by


Fill in the blank :

Marshall-Edgeworth’s Price Index Number is given by _______.


Walsh’s Price Index Number is given by _______.


`(sump_1q_0)/(sump_0q_0) xx 100` is Paasche’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 :

Calculate Walsh’s Price Index Number for the following data.

Commodity Base year Current year
  Price
p0
Quantity
q0
Price
p1
Quantity
q1
I 8 30 12 25
II 10 42 20 16

Solve the following problem :

Find x if Walsh’s Price Index Number is 150 for the following data.

Commodity Base Year Current Year
  Price
p0
Quantity
q0
Price
p1
Quantity
q1
A 5 3 10 3
B x 4 16 9
C 15 5 23 5
D 10 2 26 8

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.


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


Choose the correct alternative:

Price Index Number by using Weighted Aggregate Method is given by


Choose the correct alternative:

The formula P01 = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100` is for


Choose the correct alternative:

Walsh's Price Index Number is given by


Choose the correct alternative:

Fisher’s Price Index Number is


The average of Laspeyre’s and Paasche’s Price Index Numbers is called ______ Price Index Number


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
D 40 8 80 2

Calculate Walsh’s price Index Number for the following data.

Commodity Base Year Current Year
Price Quantity Price Quantity
I 10 12 40 3
II 20 2 25 8
III 30 3 50 27
IV 60 9 90 36

If Laspeyre’s and Paasche’s Price Index Numbers are 50 and 72 respectively, find Dorbish-Bowley’s and Fisher’s Price Index Numbers


Find the missing price if Laspeyre’s and Paasche’s Price Index Numbers are equal for following data.

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)


Calculate Marshall – Edgeworth’s price index number for the following data:

Commodity Base year Current year
Price Quantity Price Quantity
P 12 20 18 24
Q 14 12 21 16
R 8 10 12 18
S 16 15 20 25

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
B 2 5 x 2

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`


Complete the following activity to 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
I 8 30 12 25
II 10 42 20 16

Solution:

Commodity Base Year Current Year p1q0 p0q0 p1q1 p0q1
  p0 q0 p1 q1
I 8 30 12 25 360 240 300 200
II 10 42 20 16 840 420 320 160
Total         `bb(sump_1q_0=1200)` `bb(sump_0q_0=660)` `bb(sump_1q_1=620)` `bb(sump_0q_1=360)`

Laspeyre's Price Index Number:

P01(L) = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100 = square/660xx100`

∴ P01(L) = `square`

Paasche 's Price Index Number:

P01(P) = `(sum"p"_1"q"_1)/(sum"p"_0"q"_1) xx 100=(620)/(square) xx 100`

∴ P01(P) = `square`


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