Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › DSE › DSE 2006 › Q8
1 markStatistics › Index numbers and time-series basics › Constructing price indicesModerateabout 2 min

DSE 2006 Question 8: Index numbers and time-series basics

The price and quantity combinations of two services (trim and perm) sold at the 'Be Handsome' beauty parlour are as follows (PtP_tPt​ and QtQ_tQt​ denote the price and quantity respectively of a given service at time ttt): Trim: P0=50P_0=50P0​=50, P1=60P_1=60P1​=60, Q0=10Q_0=10Q0​=10, Q1=15Q_1=15Q1​=15; Perm: P0=150P_0=150P0​=150, P1=170P_1=170P1​=170, Q0=8Q_0=8Q0​=8, Q1=12Q_1=12Q1​=12. The Laspeyres price index for time t=1t=1t=1 is

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

The price and quantity combinations of two services (trim and perm) sold at the 'Be Handsome' beauty parlour are as follows (Pₜ and Qₜ denote the price and quantity respectively of a given service at time t): Trim: P₀=50, P₁=60, Q₀=10, Q₁=15; Perm: P₀=150, P₁=170, Q₀=8, Q₁=12. The Laspeyres price index for time t=1 is (A) 117.2 (B) 115.3 (C) 121.8 (D) 119.6

Also written as: The price and quantity combinations of two services (trim and perm) sold at the 'Be Handsome' beauty parlour are as follows (P_t and Q_t denote the price and quantity respectively of a given service at time t): Trim: P_0=50, P_1=60, Q_0=10, Q_1=15; Perm: P_0=150, P_1=170, Q_0=8, Q_1=12. The Laspeyres price index for time t=1 is

Index numbers and time-series basics has come up 25 times in 6 exams since 2006.

What this question tests

This question is on Constructing price indices, part of Index numbers and time-series basics in Statistics.

Building an index from prices and quantities with different weighting schemes.

TestStop has 15 past-paper questions on this subtopic.

Practise Index numbers and time-series basicsMore on Constructing price indices

Similar questions from other papers

  • IIT JAM 2026 · Q21Which one of the following statements is CORRECT in the context of price indices?
  • CUET-PG 2025 · Q72Match List-I (Categories of Time Series Patterns) with List-II (Their meaning): List-I: (A) Seasonal Variation; (B) Random Fluctuation; (C) Business Cycles; (D) Trends.…
  • UGC-NET 2023 · Q18In March 2023 the consumer price index (CPI) of a country with a 1982 base index of 100 was 234.7. This means the cost of purchasing the market basket of goods and…
  • JNU SSS 2021 · Q57The Fisher's Price Index is the ................of Laspeyre’s and Paasche’s price index numbers.
  • JNU SSS 2020 · Q27We consider Fisher’s index as an ideal index because it satisfies:

Question from the DSE 2006 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.