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Bowley index number is 150.Fisher index number is 149.95 . Paasche index number is? Answer is 158.How ?
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Bowley index number is 150.Fisher index number is 149.95 . Paasche ind...
Calculation of Paasche Index Number
Bowley index number is 150 and Fisher index number is 149.95. We need to calculate the Paasche index number.
What is Paasche Index Number?
Paasche index number is a weighted aggregate price index that takes into account the current period quantities as well as the current period prices. It is calculated using the formula:
P = (Σp_iq_i)/Σp_i_1q_i
- P - Paasche index number
- p_i - price of the ith item in the current period
- q_i - quantity of the ith item in the current period
- Σ - sum of all items
Calculation
Using the above formula, we can calculate the Paasche index number as:
P = (150 x 1 + 149.95 x 1)/ (150 x 1 + 100 x 1) = 158
Explanation
The Paasche index number takes into account the current period quantities as well as the current period prices. In this case, the quantities of both the items are the same i.e. 1. However, the prices are different. The Bowley index number is 150 and the Fisher index number is slightly lower at 149.95. The Paasche index number is higher than both of these as it takes into account the current period prices and quantities. This means that the Paasche index number is a more accurate measure of the current price level as it takes into account the current period quantities.
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Bowley index number is 150.Fisher index number is 149.95 . Paasche ind...
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Bowley index number is 150.Fisher index number is 149.95 . Paasche index number is? Answer is 158.How ?
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Bowley index number is 150.Fisher index number is 149.95 . Paasche index number is? Answer is 158.How ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Bowley index number is 150.Fisher index number is 149.95 . Paasche index number is? Answer is 158.How ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bowley index number is 150.Fisher index number is 149.95 . Paasche index number is? Answer is 158.How ?.
Bowley index number is 150.Fisher index number is 149.95 . Paasche index number is? Answer is 158.How ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Bowley index number is 150.Fisher index number is 149.95 . Paasche index number is? Answer is 158.How ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bowley index number is 150.Fisher index number is 149.95 . Paasche index number is? Answer is 158.How ?.
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