Given Σp1q0 = 100 and Σ p0q0 =102 find a suitable index number. – InterviewSolution

InterviewSolution

1.

Given Σp1q0 = 100 and Σ p0q0 =102 find a suitable index number.

Answer»

Laspeyre’s Price Index Number

P₀₁ = \(\frac{∑p_1q_0}{∑p_0q_0}\) × 100 = \(\frac{100}{102}\) × 100

= 98.04 01.

Discussion

No Comment Found

Related InterviewSolutions

What do you mean by an index number?/ Define index numbers.
Theoretically which best average is used in the construction of Index Number?
Which weights are used in Paasche’s Quantity Index No.?
which average is preferred in the construction of an index number? why
What is the other name of Consumer Price Index (CPI)?
The CPI (1982 = 100) is Rs. 526 in Jan 2005. Calculate the equivalent of a rupee in Jan 2005
Who are specific consumers considered in the construction of Index Number?
What is the base year of the new series of wholesale price index numbers published , by the govt, of india?
In general, inflation is calculated by using:1. Wholesale price index2. consumer price index3. producer’s price index.
Can the CPI for urban non – manual employees represent the changes in the cost of living of the president of India?