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04answers Practical Assignment04docx

The document provides calculations for chain indices and fixed base indices using two different sets of data. The first set uses prices of rice from 2000 to 2004, while the second set employs prices and quantities of various commodities from 2010 to 2013. The results include fixed base indices and chain base indices for each year, demonstrating the changes in prices over time.

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Iman Kundu
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11 views3 pages

04answers Practical Assignment04docx

The document provides calculations for chain indices and fixed base indices using two different sets of data. The first set uses prices of rice from 2000 to 2004, while the second set employs prices and quantities of various commodities from 2010 to 2013. The results include fixed base indices and chain base indices for each year, demonstrating the changes in prices over time.

Uploaded by

Iman Kundu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Qn.

01: Calculate chain indices and fixed base indices with year 2000 as base from the
following data
Year 2000 2001 2002 2003 2004
Price of item
20 25 30 45 63
(Rs. per Kg.)

Ans 01:

Price of Rice Fixed base


Year Link Relatives Chain base Index
(Rs. per Kg.) Index

2000 20 I00 = 1 --- C00 = 1


25
I01 = ( ) I01 = (25/20)
2001 25 20 C01 = I01 = 1.25
= 1.25
= 1.25
C02 = I01 × I12
I02 = (30/20) I12 = (30/25) = = 1.25
2002 30 × 1.20
= 1.50 1.20
= 1.50
C03 = I01 × I12 × I23
I03 = (45/20) I23 = (45/30)
2003 45 = 1.25 × 1.20 × 1.50
= 2.25 = 1.50
= 2.25
C03 = I01 × I12 × I23 × I34
I04 = (63/20) I34 = (63/45) = 1.25 × 1.20 × 1.50
2004 63
= 3.15 = 1.40 × 1.40
= 3.15
Qn. 02: Calculate chain indices and fixed base indices using Laspeyres’ formula with year
2010 as base from the following data.
2010 2011
Commodity Price (Rs.) Quantity Price (Rs.) Quantity
(𝐩𝟎 ) (𝒒𝟎 ) (𝐩𝟏 ) (𝒒𝟏 )
A 25 50 30 55
B 20 30 20 35
C 55 45 60 40
D 20 45 25 40
E 20 15 25 20
2012 2013
Commodity Price (Rs.) Quantity Price (Rs.) Quantity
(𝐩𝟐 ) (𝒒𝟐 ) (𝐩𝟑 ) (𝒒𝟑 )
A 35 55 40 50
B 30 35 40 30
C 60 40 65 35
D 30 35 30 45
E 30 20 40 15

Ans. 02
Calculation of Cross Products

Commodity 𝐩𝟎 𝐪𝟎 𝐩𝟏 𝐪𝟎 𝐩𝟐 𝐪𝟎 𝐩𝟑 𝐪𝟎 𝐩𝟏 𝐪𝟏 𝐩𝟐 𝐪𝟏 𝐩𝟑 𝐪𝟐 𝐩𝟐 𝐪𝟐
A 1250 1500 1750 2000 1650 1925 2200 1925
B 600 600 900 1200 700 1050 1400 1050
C 2475 2700 2700 2925 2400 2400 2600 2400
D 900 1125 1350 1350 1000 1200 1050 1050
E 300 375 450 600 500 600 800 600
Sum 5525 6300 7150 8075 6250 7175 8050 7025

Fixed base and Chain base Indices (Ratios)

Year Fixed base Index Link Relatives Chain base Index


2010
I00 = 1 --- C00 = 1
(0)
∑ p1 q0 ∑ p1 q0
I01 = I01 =
2011 ∑ p0 q 0 ∑ p0 q 0
C01 = I01 = 1.1403
(1) 6300 6300
= = 1.1403 = = 1.1403
5525 5525
∑ p2 q 0 ∑ p2 q1
I02 = I12 = C02 = I01 × I12
2012 ∑ p0 q 0 ∑ p1 q1
= 1.1403 × 1.1480
(2) 7150 7175
= = 1.2941 = = 1.1480 = 1.3091
5525 6250
∑ p3 q 0 ∑ p3 q 2
I03 = I23 = C03 = I01 × I12 × I23
2013 ∑ p0 q 0 ∑ p2 q 2
= 1.1403 × 1.1480 × 1.1459
(3) 8075 8050
= = 1.4615 = = 1.1459 = 1.5001
5525 7025

Fixed base and Chain base Indices (Percentages)

Year Fixed base Index Chain base Index


2010 (0) I00 = 100 C00 = 100
2011 (1) I01 = 114.03 C01 = 114.03
2012 (2) I02 = 129.41 C02 = 130.91
2013 (3) I03 = 146.15 C03 = 150.01

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