Construct index number of price from the following date by using Marshall-Edgeworth method:
|
Commodities |
2015 |
2016 |
||
|
|
Price (₹) |
Qty (Kg.) |
Price (₹) |
Qty (Kg.) |
|
A |
2 |
8 |
4 |
6 |
|
B |
5 |
10 |
6 |
5 |
|
C |
4 |
14 |
5 |
10 |
|
D |
2 |
19 |
2 |
15 |
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 125.09
| Commodities |
$p_0$ |
$q_0$ |
$p_1$ |
$q_1$ |
$p_0q_0$ |
$p_1q_0$ |
$p_0q_1$ |
$p_1q_1$ |
|
A |
2 |
8 |
4 |
6 |
16 |
32 |
12 |
24 |
|
B |
5 |
10 |
6 |
5 |
50 |
60 |
25 |
30 |
|
C |
4 |
14 |
5 |
10 |
56 |
70 |
40 |
50 |
|
D |
2 |
19 |
2 |
15 |
38 |
38 |
30 |
30 |
|
Total |
|
|
|
|
$\sum p_0q_0 = 160$ |
$\sum p_1q_0= 200$ |
$\sum p_0q_1= 107$ |
$\sum p_1q_1= 134$ |
Marshall-Edgeworth Method:
$P_{01} = \frac{\sum p_1(q_0 + q_1)}{\sum p_0(q_0 + q_1)} \times 100 = \frac{\sum p_1q_0 + \sum p_1q_1}{\sum p_0q_0 + \sum p_0q_1} \times 100$
$= \frac{200 + 134}{160 + 107} \times 100$
$= \frac{334}{267} \times 100 = 125.09$