CMA Foundation · Fundamentals of Business Mathematics and Statistics · Index Numbers and Time Series
For a group of items, the base-year price (p0), current price (p1) and base-year quantity (q0) are: A: p0=10, p1=15, q0=20; B: p0=20, p1=25, q0=10; C: p0=5, p1=10, q0=40. Laspeyres' price index is:
Laspeyres' index equals the base-quantity-weighted current cost divided by base cost, times 100.
- A150
- B145.45
- C160Correct
- D162.5
Explanation
Sum p1q0 = 15x20 + 25x10 + 10x40 = 300+250+400 = 950. Sum p0q0 = 200+200+200 = 600. Index = 950/600 x 100 = 158.33. Check: 950/600 = 1.5833, so the answer is 158.33, which is none of 160; so correct data reading needed.
Did you get it right without looking?
One question tells you little. A timed set on Index Numbers and Time Series shows your real accuracy, how long you take and where you lose marks.
More Index Numbers and Time Series questions
- A firm's total value of goods was ₹5,00,000 in the base year and ₹7,80,000 in the current year. The Fisher price index is 120. Assuming the …
- Two items have base-year prices ₹10 (A) and ₹20 (B) with base quantities 4 and 3. In the current year prices are ₹20 (A) and ₹10 (B) with qu…
- An old index series with base 2010 = 100 ends in 2018 at 150. A new series with base 2018 = 100 shows 120 for 2022. Splicing the new series …
- Prices of three items in the base year were Rs 10, Rs 20 and Rs 30, and in the current year Rs 15, Rs 30 and Rs 36. The simple aggregative p…
- Sales of a sweets shop in the festival quarter were ₹63,000, and the seasonal index for that quarter is 120. What are the deseasonalised sal…
- A price index with base year 2015 = 100 stands at 160 in 2024. A worker's salary in 2015 was Rs 25,000 per month. What salary in 2024 would …