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Question
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 |
Solution
| Commodity | Base Year | Current Year | q0q1 | `sqrt("q"_0"q"_1)` | `"p"_1/sqrt("q"_0"q"_1)` | `"p"_0/sqrt("q"_0"q"_1)` | ||
| p0 | q0 | p1 | q1 | |||||
| I | 8 | 30 | 12 | 25 | 750 | 27.39 | 328.68 | 219.12 |
| II | 10 | 42 | 20 | 16 | 672 | 25.92 | 518.40 | 259.20 |
| Total | – | – | – | – | – | – | 847.08 | 478.32 |
From the table,
`sum"p"_1sqrt("q"_0"q"_1) = 847.08, sum"p"_0sqrt("q"_0"q"_1) = 478.32`
Walsh’s Price Index Number:
P01(W) = `(sum"p"_1sqrt("q"_0"q"_1))/(sum"p"_0sqrt("q"_0"q"_1)) xx 100`
= `(847.08)/(478.32) xx 100`
= 177.09
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RELATED QUESTIONS
Calculate Laspeyre’s, Paasche’s, Dorbish-Bowley’s, and Marshall - Edgeworth’s Price index numbers.
| Commodity | Base Year | Current Year | ||
| Price | Quantity | Price | Quantity | |
| I | 10 | 9 | 20 | 8 |
| II | 20 | 5 | 30 | 4 |
| III | 30 | 7 | 50 | 5 |
| IV | 40 | 8 | 60 | 6 |
Calculate Walsh’s Price Index Number.
| Commodity | Base Year | Current Year | ||
| Price | Quantity | Price | Quantity | |
| L | 4 | 16 | 3 | 19 |
| M | 6 | 16 | 8 | 14 |
| N | 8 | 28 | 7 | 32 |
If ∑ p0q0 = 140, ∑ p0q1 = 200, ∑ p1q0 = 350, ∑ p1q1 = 460, find Laspeyre’s, Paasche’s, Dorbish-Bowley’s and Marshall-Edgeworth’s Price Index Numbers.
Given that ∑ p0q0 = 220, ∑ p0q1 = 380, ∑ p1q1 = 350 and MarshallEdgeworth’s Price Index Number is 150, find Laspeyre’s Price Index Number.
Paasche’s Price Index Number is given by ______
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 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 |
|
| A | 20 | 18 | 30 | 15 |
| B | 25 | 8 | 28 | 5 |
| C | 32 | 5 | 40 | 7 |
| D | 12 | 10 | 18 | 10 |
Solve the following problem:
If find x is 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 |
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:
The formula P01 = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100` is for
Marshall-Edgeworth's Price Index Number is given by ______
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 | 5 | – | 12 |
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`
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`
