FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS I 7.25

u Kelly’s Method

01 1

0

P = ΣΣp qpq × 100

B. WEIGHTED AVERAGE OF RELATIVE METHOD
u When Arithmetic mean is used
01

P PV

V

= Σ

Σ

u When Geometric mean is used

( )

01

P antilog logP V

V

= Σ ×

Σ

QUANTITY INDEX NUMBERS

A. UNWEIGHTED INDEX : SIMPLE AGGREGATIVE METHOD

01 1

0

Q = ΣΣqq × 100

B. UNWEIGHTED INDEX : SIMPLE AVERAGE OF QUANTITY RELATIVE METHOD
When Arithmetic mean for averaging is used
1
01 0

100

Q N

Σ^ ×^

(^)

q
q
When Geometric Mean is used for averaging the relatives
1
01 0
log 100
Q N

Σ^ ×^

(^)

q
q

WEIGHTED INDEX

A. SIMPLE AGGREGATIVE METHOD

u Laspeyres’ Method

01 1 0

0 0

Q = ΣΣq pq p × 100

u Paasche’s Method

01 1 1

0 1

Q = ΣΣq pq p × 100

u Dorbish & Bowley’s Method

1 0 1 1

Q 01 0 0 0 1 100

2

Σ + Σ

= Σ Σ ×

q p q p

q p q p