If $∑p_1q_0=3800: ∑p_1q_1=3200: ∑p_0q_0=2600: ∑p_0q_1=3000,$ the index number using Marshall-edgeworth's method is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 125
The Marshall-edgeworth's Price index,
$I_M=\frac{∑P_1(q_0+q_1)}{∑P_0(q_0+q_1)}×100$
$=\frac{3800+3200}{2600+3000}×100$
$=\frac{7000}{5600}×100=125$