If and are price and quantity in year 1 and and are price and quantity in year O (Base Year), which of the following is true?
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1 mark, −0.33StatisticsIndex numbers and time-series basicsConstructing price indicesModerateabout 1 min
UoH 2010 Question 63: Index numbers and time-series basics
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If p¹_z and q¹_b are price and quantity in year 1 and p^o_z and q^o_b are price and quantity in year O (Base Year), which of the following is true? (A) Laspeyer's Index Number = Σ p¹_z q^o_b / Σ p^o_z q^o_b (B) Laspeyer's Index Number = Σ p¹_z q¹_b / Σ p^o_(1z) q^o_b (C) Paasche's Index Number = Σ p¹_z q¹_b / Σ p^o_(1z) q^o_b (D) Paasche's Index Number = Σ p¹_z q¹_b / Σ p¹ₐ q^o_b
Also written as: If p^1_z and q^1_b are price and quantity in year 1 and p^o_z and q^o_b are price and quantity in year O (Base Year), which of the following is true?
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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.
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