Construct index number of price from the following date by using Laspeyre's 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 2
The correct answer is Option (2) → 125
| 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 |
|
|
|
|
$\sum p_0q_0 = 160$ |
$\sum p_1q_0 = 200$ |
$\sum p_0q_1 = 107$ |
$\sum p_1q_1 = 134$ |
Laspeyre's Method:
$P_{01} = \frac{\sum p_1q_0}{\sum p_0q_0} \times 100 = \frac{200}{160} \times 100 = 125 \text{}$