Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

Given that $∑p_0q_0=800, ∑p_0q_1=1500,∑p_1q_0=955$ and $∑p_1q_1=1300,$ where subscripts 0 and 1 are used for base years and current year respectively. The Laspeyre's index number is :

Options:

120.89

119.97

119.38

116.25

Correct Answer:

119.38

Explanation:

The correct answer is Option (3) → 119.38

The Laspeyres's Index Number is,

$L=\left(\frac{∑p_1q_0}{∑p_0q_0}\right)×100$

$=\frac{955}{800}×100=119.38$