Question

What is dorbish and bowley method formula for weighted index no?

Answer 1

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Answer 2

Dorbish and Bowley method formula to calculate weighted index number:

Dorbish and Bowley have proposed simple arithmetic mean of the 2 indices (Laspeyres and Paasche) so to take into account the effect of both the periods that is current as well as base periods.

The formula for weighted index number is as follows:

$Po1= (LPo1+PPo1)/2$

$Po1= \frac{\frac{EP1qo}{Poqo}+ \frac{EP1q1}{Poq1} }{2}*100$

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