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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

5. Dorbish-Bowley's index number Example-5





1. Find Laspeyre's index number, Paasche's index number, Dorbish-Bowley'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. Dorbish and Bowley's price index

`I_D=(I_L + I_P)/2`

`=(110.6129+110.1576)/2`

`=(220.7705)/2`

`=110.39`

Thus, there is a rise of `(110.39-100)=10.39%` in prices
2. Find Dorbish-Bowley'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. Dorbish and Bowley's price index

`I_D=((sum p_1q_0)/(sum p_0q_0) + (sum p_1q_1)/(sum p_0q_1))/2 xx 100`

`=((456)/(406) + (506)/(451))/2 xx 100`

`=(2.2451)/2 xx 100`

`=1.1226 xx 100`

`=112.26`

Thus, there is a rise of `(112.26-100)=12.26%` in prices
3. Find Dorbish-Bowley'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. Dorbish and Bowley's price index

`I_D=((sum p_1q_0)/(sum p_0q_0) + (sum p_1q_1)/(sum p_0q_1))/2 xx 100`

`=((395)/(260) + (422)/(264))/2 xx 100`

`=(3.1177)/2 xx 100`

`=1.5589 xx 100`

`=155.89`

Thus, there is a rise of `(155.89-100)=55.89%` in prices




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