Index NumbersMCQMTP Sep 24 Series IQuestion 3935 of 197
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∑P0Q0=1360\displaystyle \sum P_0Q_0 = 1360, ∑PnQ0=2000\displaystyle \sum P_nQ_0 = 2000, then the Laspeyres Index number is:

Options

A71
B147.50
C175
DNone of these
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Correct Answer

✅ Option b — 147.50

All Options:

  • A71
  • B147.50
  • C175
  • DNone of these

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Detailed Solution & Explanation

We are given: - ∑P0Q0=1360\displaystyle \sum P_0 Q_0 = 1360 - ∑PnQ0=2000\displaystyle \sum P_n Q_0 = 2000 The Laspeyres price index is: P0nL=∑PnQ0∑P0Q0×100=20001360×100≈147.06%P_{0n}^L = \frac{\sum P_n Q_0}{\sum P_0 Q_0} \times 100 = \frac{2000}{1360} \times 100 \approx 147.06\% The closest option provided is Option B (147.50\displaystyle 147.50). Hence, **Option B** 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 ∑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

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

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