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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

4. Marshall Edgeworth's index numberExample-4





1. Find Marshall Edgeworth'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. Marshall Edgeworth index number

`I_M=(sum p_1q_0+sum p_1q_1)/(sum p_0q_0+sum p_0q_1) xx 100`

`=(740+629)/(669+571) xx 100`

`=(1369)/(1240) xx 100`

`=110.4`

Thus, there is a rise of `(110.4-100)=10.4%` in prices
2. Find Marshall Edgeworth's index number
ItemPrice0Quantity0Price1Quantity1
A10201222
B816818
C510611
D4748


Solution:
Item`p_0``q_0``p_1``q_1``p_1q_0``p_0q_0``p_1q_1``p_0q_1`
A10201222240200264220
B816818128128144144
C51061160506655
D474828283232
---------------------------
Total`456``406``506``451`


1. Marshall Edgeworth index number

`I_M=(sum p_1q_0+sum p_1q_1)/(sum p_0q_0+sum p_0q_1) xx 100`

`=(456+506)/(406+451) xx 100`

`=(962)/(857) xx 100`

`=112.25`

Thus, there is a rise of `(112.25-100)=12.25%` in prices
3. Find Marshall Edgeworth's index number
ItemPrice0Quantity0Price1Quantity1
A325528
B150360
C230130
D515612


Solution:
Item`p_0``q_0``p_1``q_1``p_1q_0``p_0q_0``p_1q_1``p_0q_1`
A3255281257514084
B1503601505018060
C23013030603060
D51561290757260
---------------------------
Total`395``260``422``264`


1. Marshall Edgeworth index number

`I_M=(sum p_1q_0+sum p_1q_1)/(sum p_0q_0+sum p_0q_1) xx 100`

`=(395+422)/(260+264) xx 100`

`=(817)/(524) xx 100`

`=155.92`

Thus, there is a rise of `(155.92-100)=55.92%` in prices




This material is intended as a summary. Use your textbook for detail explanation.
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