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From the following data Commodities base year current year A. 25. 55 B. 30. 45 Then index numbers from G.M method is: a. 181.66. b.185.25. c.181.75. d.none of these?
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From the following data Commodities base year current year A. 25. 55 B...
Calculation of Index Numbers using Geometric Mean Method
Given Data:
Commodity A:
Base Year = 25
Current Year = 55
Commodity B:
Base Year = 30
Current Year = 45
Step 1: Calculate the Price Relative for each commodity
Price Relative = (Current Year Price / Base Year Price) x 100
For Commodity A:
Price Relative = (55 / 25) x 100 = 220
For Commodity B:
Price Relative = (45 / 30) x 100 = 150
Step 2: Calculate the Geometric Mean of Price Relatives
Geometric Mean = √(Price Relative of Commodity A x Price Relative of Commodity B)
Geometric Mean = √(220 x 150) = √33000 = 181.6615 (approx.)
Therefore, the index number from G.M method is 181.66 (approx.) which corresponds to option (a).
Note: The correct answer may vary slightly due to rounding off of decimals.
Given Data:
Commodity A:
Base Year = 25
Current Year = 55
Commodity B:
Base Year = 30
Current Year = 45
Step 1: Calculate the Price Relative for each commodity
Price Relative = (Current Year Price / Base Year Price) x 100
For Commodity A:
Price Relative = (55 / 25) x 100 = 220
For Commodity B:
Price Relative = (45 / 30) x 100 = 150
Step 2: Calculate the Geometric Mean of Price Relatives
Geometric Mean = √(Price Relative of Commodity A x Price Relative of Commodity B)
Geometric Mean = √(220 x 150) = √33000 = 181.6615 (approx.)
Therefore, the index number from G.M method is 181.66 (approx.) which corresponds to option (a).
Note: The correct answer may vary slightly due to rounding off of decimals.
Community Answer
From the following data Commodities base year current year A. 25. 55 B...
PR=P1/P0*100=55/25*100=220. 45/30*100=150. GM=sq root both. √220*150=181.66(a)
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From the following data Commodities base year current year A. 25. 55 B. 30. 45 Then index numbers from G.M method is: a. 181.66. b.185.25. c.181.75. d.none of these?
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From the following data Commodities base year current year A. 25. 55 B. 30. 45 Then index numbers from G.M method is: a. 181.66. b.185.25. c.181.75. d.none of these? 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 From the following data Commodities base year current year A. 25. 55 B. 30. 45 Then index numbers from G.M method is: a. 181.66. b.185.25. c.181.75. d.none of these? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following data Commodities base year current year A. 25. 55 B. 30. 45 Then index numbers from G.M method is: a. 181.66. b.185.25. c.181.75. d.none of these?.
From the following data Commodities base year current year A. 25. 55 B. 30. 45 Then index numbers from G.M method is: a. 181.66. b.185.25. c.181.75. d.none of these? 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 From the following data Commodities base year current year A. 25. 55 B. 30. 45 Then index numbers from G.M method is: a. 181.66. b.185.25. c.181.75. d.none of these? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following data Commodities base year current year A. 25. 55 B. 30. 45 Then index numbers from G.M method is: a. 181.66. b.185.25. c.181.75. d.none of these?.
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