Question
Calculate Laspeyre’s and Paasche’s Index from the given data.
✓
Answer
(A) Calculation of Laspeyre’s Index Number:
Laspeyre's Index $P _{01}=\frac{\Sigma p_1 q_0}{\Sigma p_0 q_0} \times 100$
$ =\frac{1,200}{660} \times 100$
$=181.81 $
(B) Paasche’s Index Number :
Paasche's Index Number
$ P_{01}=\times 100$
$=\times 100$
$=172.22 $
Laspeyre's Index $=181.81$
Paasche's Index $=172.22$
Laspeyre's Index $P _{01}=\frac{\Sigma p_1 q_0}{\Sigma p_0 q_0} \times 100$
$ =\frac{1,200}{660} \times 100$
$=181.81 $
(B) Paasche’s Index Number :
Paasche's Index Number$ P_{01}=\times 100$
$=\times 100$
$=172.22 $
Laspeyre's Index $=181.81$
Paasche's Index $=172.22$
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