1 9:03 AM 5/19/2024

Azad Lecture Sheet

Course Title: Business Statistics
For B.B.A 3rd Year - Management
For B.B.A 2nd Year - Accounting
Topic # Index Number
Necessary Formula For Index Number
Formulas Name Formulas Formulas Name Formulas
Laspeyeres P q N o
 100
Paasche P q
N N
 100
Index( P01 ) Index( P01 )
p q 0 0 p q
0 N

Dorbish & LP Fisher Ideal L  P  100

Bowely ( P01 )
 100 Index
2
Marshall &
Edgeworth
 PN qo   PN q N  100
Weighted Index  IW  100
 p q P q
0 0 O N W
Time reversal Real Income
test L P 
P q  P q 1O N O O
Income
 100
Index
P q P q N N N O

Factor reversal
test L P 
P q  P q  P q
O N N N N N
% Change R.I CRI
 100
PRI
P q P q
O O p q N O 0 0

Problem # 201. Compute the index number with the help of the data given below:
Commodity Base year Current year
Price tk. Quantity Price tk. Quantity
A 30 80 40 92
B 28 90 30 105
C 22 60 20 90
Price Index
i) Laspeyeres Index ( P01 ) ii) Paasche Index ( P01 ) iii) Dorbish & Bowely ( P01 )
iv) Fisher Ideal Index v) Marshall & Edgeworth

Problem # 202. From the following data prepare fisher’s ideal index:
Commodity Base year Current year
Price tk. Quantity Price tk. Quantity
A 6 50 10 56
B 2 100 2 120
C 4 60 6 60
D 10 30 12 24

Problem # 203. Give the following data; what index number will you use for purposes of comparison? Give reasons :
Commodity 1986 1987
Price Quantity Price Quantity
A 9.3 100 4.5 90
B 6.4 11 3.7 10
C 5.1 6 2.7 3

Azad Commerce Academy. Hazi Veasin Ali Lane. .230, Commerce Collage Road. Chittagong .Contact # 0 1554-338487
2 9:03 AM 5/19/2024
Problem # 204. The following data represent livestock price and production. Prices are indicated by p and production by q:
Item 1970 1980 1993
po qo po qo po qo
A 46.6 42.4 31.2 56.2 39.8 66.6
B 36.0 40.4 30.0 40.4 41.2 36.4
C 23.2 2.6 11.6 3.2 12.6 2.6
I. Calculate the index of livestock price for 1993 using 1970 and 1980 bases;
II. Comment on the method you have used.

Problem # 205. . Construct with the help of the data given below fisher’s index and show how it satisfies both the test:
Commodity 1970 1977
Price Quantity Price Quantity
A 50 250 150 200
B 100 300 300 400
C 80 100 100 150
D 70 350 50 250

Problem # 206. Calculate the cost of living index number for the following data and comment :
Item base year current year weight
Food 30 47 4
Fuel 8 12 2
Clothing 14 18 3
House rent 22 15 2
Miscellaneous 25 30 1

Problem # 207. Calculation cost of living index number from the following data and explain the result obtained:
Commodity Price per md. in taka Total expenditure
1984 1989 in 1984 (in taka)
Rice 320 340 11600
Wheat 250 300 6500
Pulses 500 550 1500
Sugar 540 600 1080

Problem # 208. Calculation cost of living index number from the following data and explain the result obtained
Commodity Price per md. In taka Average monthly expenditure
1986 1988 per family in taka
Rice 450 500 800
Wheat 350 400 50
Pulses 1100 1200 70
Sugar 750 850 80

Problem # 209. Expenditure Food House rent Cloth Fuel Others

30% 15% 20% 10% 25%
Value (1967) : 100 20 70 20 40
Value (1968) : 90 20 60 15 55
Discuss what change took place in cost of living of 1968 in comparison with 1967.
Problem # 210. A person in the city of Chittagong earns tk. 7000 per month. The cost of living index is 136. uning the
following data find out the amounts he spent in house rent and clothing :
Group Expenditure (tk.) Group index
Food 2,800 180
Clothing ? 150
House rent ? 100
Fuel & lighting 1,120 110
Miscellaneous 1,260 80

Azad Commerce Academy. Hazi Veasin Ali Lane. .230, Commerce Collage Road. Chittagong .Contact # 0 1554-338487
3 9:03 AM 5/19/2024

Problem # 211. The cost of living index uses the following weights:
Food-40, Rent-15, Clothing-20, Fuel-10, Misc.-15. During the period 1990-97, the cost of living index number rose from 100
to 205.72. Over the same period the percentage rise in price were: Rent-60, Clothing-180, Fuel-75, Misc.-165. What was the
percentage change in the price of food?

Problem # 212. . Construct with the help of the data given below fisher’s index and show how it satisfies both the test:
Commodity 1970 1977
Price Value Price Value
A 5 250 10 200
B 10 300 8 400
C 4 100 5 150

Problem # 213. The following table gives the per capital income and the cost of living index of a particular community.
Calculate the change in real income taking into account the rise in the cost of living:
Year : 1982 1983 1984 1985 1986 1987 1988 1989
Cost of living index : 100 104 115 160 210 260 300 320
Per capital income : 1360 1400 1480 1520 1550 1590 1610 1650

Problem # 214. From the following data, deflate the income with the cost of living index and examine how real income has
been changed : Year: 1986 1987 1988 1989 1990 1991
Monthly income : 4,000 5,000 6,000 7,000 8,000 10,000
Cost of living index : 100 150 250 300 400 450

Problem # 215. Following table gives the weekly wages of the workers of a firm together with the price index number :
Year : 1992 1993 1994 1995 1996 1997 1998
Wages : 300 340 450 460 480 570 575
Price index : 100 160 180 210 250 260 280
Compute the index number of real income and explain the percent change in real income from 1992 to 1998.

Problem # 216. The hourly wages and cost of living index of the workers of a factory for the years from 1960 to 1966 are
given below:
Year : 1960 1961 1962 1963 1964 1965 1966
Hourly wages : 5.00 6.00 7.80 8.00 8.40 9.00 12.00
Index : 100.00 102.50 103.00 105.00 108.00 110.00 115.00
1. Calculate the actual hourly wages of workers taking 1960 as the base year.
2. A worker could buy 5 kgs. Of fish at tk. 20 in 1960. How much fish the worker would be able to buy at tk. 20 in
1966?

Azad Commerce Academy. Hazi Veasin Ali Lane. .230, Commerce Collage Road. Chittagong .Contact # 0 1554-338487