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Siilas campus
Presentation-
Business Statics
Weighted Index Number
Submitted to- Presented by-
MR. Nitin Sharma Vinay kumar verma
BBA- 3rd Sem (Sec โ€“A)
INDEX
โ€ข Weighted Index number- Introduction
โ€ข Construction of Weighted Index Number
โ€ข Method of weighted Index Number Calculation
โ€ข Laspeyres method.
โ€ข Paasche method.
โ€ข Dorbish and bowleyโ€™s method.
โ€ข Marshall-Edgeworth method.
โ€ข Fisherโ€™s ideal method.
Weighted Index Number โ€“
Introduction
These index numbers are the simple
aggregative type with the fundamental
difference that weights are assigned to the
various items included in the index.
Construction of Weighted Index Number
There are two Methods :-
1. Weighted Aggregative Expenditure Method:-
In this method No of units produced or used or sold in the base year are treated as weight.
2. Weighted Average of price Relative Method (Family Budget Method):-
In this method price relative R of commodities are computed and they are multiplied by respective
weight W; Again the some of these products are found out. They are denoted by ฮฃRW.
W = Po.Qo
R =
Method for Weighted Index Number
Calculation
๏ต Laspeyres method.
๏ต Paasche method.
๏ต Dorbish and bowleyโ€™s method.
๏ต Marshall-Edgeworth method.
๏ต Fisherโ€™s ideal method.
๏ต Laspeyres method :-
In this method the weights are determined by quantities in
the base.
๏ต Paascheโ€™s Method :-
The weights of current year are used as base year in
constructing the Paascheโ€™s Index number.
๏ต Dorbish & Bowleys Method:-
This method is average of Laspeyreโ€™s and Paascheโ€™s
methods.
๏ต Marshall-Edgeworth Method :-
๏ตIn this index the numerator consists of an aggregate of the
current years price multiplied by the weights of both the base
year as well as the current year.
๏ต Fisherโ€™s Ideal Index :-
Fisherโ€™s deal index number is the geometric mean of the
Laspeyreโ€™s and Paascheโ€™s index numbers.
Weighted index number - business statistics

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Weighted index number - business statistics

  • 1. Siilas campus Presentation- Business Statics Weighted Index Number Submitted to- Presented by- MR. Nitin Sharma Vinay kumar verma BBA- 3rd Sem (Sec โ€“A)
  • 2. INDEX โ€ข Weighted Index number- Introduction โ€ข Construction of Weighted Index Number โ€ข Method of weighted Index Number Calculation โ€ข Laspeyres method. โ€ข Paasche method. โ€ข Dorbish and bowleyโ€™s method. โ€ข Marshall-Edgeworth method. โ€ข Fisherโ€™s ideal method.
  • 3. Weighted Index Number โ€“ Introduction These index numbers are the simple aggregative type with the fundamental difference that weights are assigned to the various items included in the index.
  • 4. Construction of Weighted Index Number There are two Methods :- 1. Weighted Aggregative Expenditure Method:- In this method No of units produced or used or sold in the base year are treated as weight. 2. Weighted Average of price Relative Method (Family Budget Method):- In this method price relative R of commodities are computed and they are multiplied by respective weight W; Again the some of these products are found out. They are denoted by ฮฃRW. W = Po.Qo R =
  • 5. Method for Weighted Index Number Calculation ๏ต Laspeyres method. ๏ต Paasche method. ๏ต Dorbish and bowleyโ€™s method. ๏ต Marshall-Edgeworth method. ๏ต Fisherโ€™s ideal method.
  • 6. ๏ต Laspeyres method :- In this method the weights are determined by quantities in the base. ๏ต Paascheโ€™s Method :- The weights of current year are used as base year in constructing the Paascheโ€™s Index number.
  • 7. ๏ต Dorbish & Bowleys Method:- This method is average of Laspeyreโ€™s and Paascheโ€™s methods. ๏ต Marshall-Edgeworth Method :- ๏ตIn this index the numerator consists of an aggregate of the current years price multiplied by the weights of both the base year as well as the current year.
  • 8. ๏ต Fisherโ€™s Ideal Index :- Fisherโ€™s deal index number is the geometric mean of the Laspeyreโ€™s and Paascheโ€™s index numbers.