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5. Weighted Index Numbers example ( Enter your problem )
  1. Laspeyre's index number Example-1
  2. Paasche's index number Example-2
  3. Fisher's index number Example-3
  4. Marshall Edgeworth's index numberExample-4
  5. Dorbish-Bowley's index number Example-5
  6. Kelly's index number Example-6
  7. Walsh's index number Example-7

1. Laspeyre's index number Example-1





1. Find Laspeyre's index number, Paasche's index number, Fisher's index number
ItemPrice0Quantity0Price1Quantity1
Rice391401.5
Milk40124410
Bread452501.5
Banana302361.5


Solution:
Item`p_0``q_0``p_1``q_1``p_1q_0``p_0q_0``p_1q_1``p_0q_1`
Rice391401.540396058.5
Milk40124410528480440400
Bread452501.5100907567.5
Banana302361.572605445
---------------------------
Total`740``669``629``571`


1. Laspeyre's index number

`I_L=(sum p_1q_0)/(sum p_0q_0) xx 100`

`=(740)/(669) xx 100`

`=110.61`

Thus, there is a rise of `(110.61-100)=10.61%` in prices



2. Paasche's index number

`I_P=(sum p_1q_1)/(sum p_0q_1) xx 100`

`=(629)/(571) xx 100`

`=110.16`

Thus, there is a rise of `(110.16-100)=10.16%` in prices



3. Fisher's index number

`I_F=sqrt(I_L xx I_P)`

`=sqrt(110.6129 xx 110.1576)`

`=110.39`

Thus, there is a rise of `(110.39-100)=10.39%` in prices




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