Paper 4: Fundamentals of Business Mathematics & Statistic

FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS I 7.23

Problem 7. Distinguish between Laspeyres’ and Paasche Index.
Unsolved Problems (Practical)
Problem I. Calculate Paasche’s Quantity Index and Laspeyre’s Price Index for the following data—
Commodities Quantity (Units) Value (`)
2008 2012 2008 2012
A 100 150 500 900
B 80 100 320 500
C 60 72 120 360
D 30 33 360 297
(Ans. 131.2, 120.77)

Problem 2. Calculate Fisher’s Ideal Index from the following data and show that it satisfies Time
Reversal Test.
Commodity 2010-2011 2011-2012
Price Quantity Price Quantity
A 10 100 12 96
B 8 96 8 104
C 12 144 5 120
D 20 300 25 250
E 5 40 8 64
F 2 20 4 24
(Ans. 109.26)
Problem 3. From the fixed base Index Numbers given below find out chain base index number—
Year 2008 2009 2010 2011 2012
Fixed base index numbers 267 275 280 290 320

(Ans. 100, 103, 101, 103, 110.4)
Problem 4. From the chain base index numbers given below prepare fixed base index numbers—
Year 2008 2009 2010 2011 2012
Chainbase Index No. 80 110 120 105 95

(Ans. 80, 88, 105.6, 110.9, 105.33)
Problem 5. Compute Fisher’s index number from the following data & show that it satisfies time reversal test
and factor reversed test.
Commodity A B C
Price Quantity Price Quantity Price Quantity
Base year 4 50 3 10 2 5
Current year 10 40 8 8 4 4
(Ans. 250)