laspeyers method of weighted index numbers
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When all commodities are not of equal importance, we assign weight to each commodity relative to its importance and the index number computed from these weights is called a weighted index number.
Laspeyre’s Index Number
In this index number the base year quantities are used as weights, so it also called the base year weighted index.
Pon=∑Pnqo∑Poqo×100
HOPING IT WILL BE HELPFUL TO YOU
Laspeyre’s Index Number
In this index number the base year quantities are used as weights, so it also called the base year weighted index.
Pon=∑Pnqo∑Poqo×100
HOPING IT WILL BE HELPFUL TO YOU
apurv5:
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