Chapter 1 Index Number

May 5, 2024 chinu

Chapter 1 Index Number

Chapter 1 Index Number Ex 1.3

1. The information about six different items used in the production of an electronics item is as follows. Find the index number and interpret it.

Answer

Chapter 1 Index Number Ex 1.3

2. The information about six different items used in the furniture items is as follows. Find the index number for the year 2015 with the base year 2014 and interpret it.

Answer

Chapter 1 Index Number Ex 1.3

3. Find the Laspeyre’s, Paasche’s and Fisher’s index numbers for the year 2015 with the base year 2014 using the following information:

Answer

Base year is 2014. ∴ p0 = Price in 2014, q0 = Quantity in 2014,
p1 = Price in 2015, q1 = Quantity in 2015.
To compute Laspeyre’s, Paasche’s and Fisher’s index numbers for the year 2015, the table of calculation is prepared as follows:

Chapter 1 Index Number Ex 1.3

4.Find the Laspeyre’s, Paasche’s and Fisher’s index numbers for the year 2015 with the base year 2014 using the following information:

Answer

Here, base year is 2014.
∴ p0 = Price in 2014, q0 = Quantity in 2014,
P1 = Price in 2015, q1 = Quantity in 2015.
The units of price and quantity for the items A, B, C and D are not equal. So we compute after making the units of price and quantity.

Chapter 1 Index Number Ex 1.3

5. Find the ideal index number from the following data for the year 2015:

Answer

Here, p0 = Price in 2014, q0 = Quantity in 2014,
P1 = Price in 2015, q1 = Quantity in 2015.
After making the units of price and quantity, we will compute the ideal index number, i.e., Fisher’s index number.