Index NumbersMCQPYQ Nov. 18Question 3876 of 197
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If ∑P0q0=240\displaystyle \sum P_0q_0 = 240, ∑P1q0=480\displaystyle \sum P_1q_0 = 480, ∑P0q1=600\displaystyle \sum P_0q_1 = 600 and ∑P1q1=192\displaystyle \sum P_1q_1 = 192, then Laspeyres's Index Number is

Options

A250\displaystyle 250
B300\displaystyle 300
C350\displaystyle 350
D200\displaystyle 200
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Correct Answer

✅ Option d — 200\displaystyle 200

All Options:

  • A250\displaystyle 250
  • B300\displaystyle 300
  • C350\displaystyle 350
  • D200\displaystyle 200

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Detailed Solution & Explanation

We are given: ∑P0q0=240,∑P1q0=480,∑P0q1=600,∑P1q1=192\sum P_0q_0 = 240, \quad \sum P_1q_0 = 480, \quad \sum P_0q_1 = 600, \quad \sum P_1q_1 = 192 The **Laspeyres Index Number** is: P01L=∑P1q0∑P0q0×100=480240×100=2×100=200P_{01}^L = \frac{\sum P_1q_0}{\sum P_0q_0} \times 100 = \frac{480}{240} \times 100 = 2 \times 100 = 200 Hence, **Option D** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

Index Number

A statistical device for measuring changes in the magnitude of a group of related variables (like prices or production) over time.

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More Questions from Index Numbers

In price index, when a new commodity is required to be added, which of the following index is used?

Fisher's ideal formula for calculating index number satisfies the ________

Shifted Price Index = Original Price IndexPrice Index of the year on which it has to be shifted×100\displaystyle \frac{\text{Original Price Index}}{\text{Price Index of the year on which it has to be shifted}} \times 100

If Laspeyres's Index Number is 250 and Paasche's Index Number is 160, then Fisher's Index number is

If ΣPnqn=249\displaystyle \Sigma P_n q_n = 249, ΣP0q0=150\displaystyle \Sigma P_0 q_0 = 150, ΣPnq0=145\displaystyle \Sigma P_n q_0 = 145 and Paasche's Index Number = 150, then Fisher's Ideal Price Index Number is

From the following data, find out an Index number for 2022 taking 2021 as base (using simple aggregative method): A (80, 120), B (220, 200), C (300, 400).

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