Construct Laspeyre’s index for the following data taking 2014 as base year Items year 2014 year 2015 Price Quantity Price Quantity A 6 50 10 56 B 2 100 2 120 C 4 60 6 60 D 10 30 12 24 E 8 40 12 36

Given that, Items year 2014 year 2015 Price Quantity Price Quantity A 6 50 10 56 B 2 100 2 120 C 4 60 6 60 D 10 30 12 24 E 8 40 12 36 Let p 0 , q 0 are prices and quantities of items of base year 2014 and p 1 , q 1 are prices and quantities of items of current year 2015 . Tabular form: Items year 2014 year 2015 Price p 0 Quantity q 0 Price p 1 Quantity q 1 p 0 q 0 p 1 q 0 p 0 q 1 p 1 q 1 A 6 50 10 56 300 500 336 560 B 2 100 2 120 200 200 240 240 C 4 60 6 60 240 360 240 360 D 10 30 12 24 300 360 240 288 E 8 40 12 36 320 480 288 432 ∑ p 0 q 0 = 1360 ∑ p 1 q 0 = 1900 ∑ p 0 q 1 = 1344 ∑ p 1 q 1 = 1880 Formula of Laspeyre’s index numder is P 01 L = ∑ p 1 q 0 ∑ p 0 q 0 × 100 ⇒ 1900 1360 × 100 = 139 . 7 ∴ Laspeyre’s index number is P 01 L = 139 . 7 .

E M B I B E

Statistics Standard 12>Chapter 6 - Index Numbers>Exercise>Q 7

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IMPORTANT

Earn 100

The geometric mean of Laspeyre’s and Paasche’s price indices is also known as

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Important Questions on Index Numbers

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IMPORTANT

Statistics Standard 12>Chapter 6 - Index Numbers>Exercise>Q 1

In simple aggregate method, the aggregate price of all items in the given year is expressed as percentage of the same in the

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IMPORTANT

Statistics Standard 12>Chapter 6 - Index Numbers>Exercise>Q 2

If the index for

1990

to the base

1980

is

250

, the index number for

1980

to the base

1990

is

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Statistics Standard 12>Chapter 6 - Index Numbers>Exercise>Q 3

If Laspeyre’s price index is

324

and Paasche’s price index is

144

then Fisher’s ideal index is

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Statistics Standard 12>Chapter 6 - Index Numbers>Exercise>Q 4

The index that satisfies factor reversal test is

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Statistics Standard 12>Chapter 6 - Index Numbers>Exercise>Q 15

Point out the difference between weighted and unweighted index numbers

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IMPORTANT

Statistics Standard 12>Chapter 6 - Index Numbers>Exercise>Q 29

Construct Laspeyre’s index for the following data taking 2014 as base year

Items	year $2014$		year $2015$
Items	Price	Quantity	Price	Quantity
A	$6$	$50$	$10$	$56$
B	$2$	$100$	$2$	$120$
C	$4$	$60$	$6$	$60$
D	$10$	$30$	$12$	$24$
E	$8$	$40$	$12$	$36$

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IMPORTANT

Statistics Standard 12>Chapter 6 - Index Numbers>Exercise>Q 32

From the data given, in problem. Obtain the following Compute Index number using Fisher’s formula and show it satisfies time reversal test and factor reversal test