Dorbish Bowley’s Price Index Number is

Options

A. `P_(01) (L) + P_(01)(P)`
B. `P_(01)(L)-P_(01)(P)`
C. `(P_(01(L))+P_(01(P)))/2 xx100`
D. `(P_(01(L))+P_(01(P)))/2 `

Answer

To find Dorbish Bowley’s Price Index Number, we need to understand that it is calculated as the average of two price index numbers: the last prices price index number and the passes price index number. Here’s how to derive it step by step:

### Step-by-Step Solution:

1. **Identify the Price Index Numbers**:
- Let \( P_{01} \) be the Last Prices Price Index Number.
- Let \( P_{02} \) be the Passes Price Index Number.

2. **Formula for Dorbish Bowley’s Price Index Number**:
- The formula for Dorbish Bowley’s Price Index Number (denoted as \( P_{DB} \)) is given by:
\[ P_{DB} = \frac{P_{01} + P_{02}}{2} \]
- This formula indicates that we take the average of the two index numbers.

3. **Substituting Values**:
- If specific values for \( P_{01} \) and \( P_{02} \) are provided in a problem, substitute them into the formula.
- For example, if \( P_{01} = 120 \) and \( P_{02} = 80 \), then:
\[ P_{DB} = \frac{120 + 80}{2} \]

4. **Calculating the Average**:
- Perform the addition:
\[ 120 + 80 = 200 \]
- Now divide by 2:
\[ P_{DB} = \frac{200}{2} = 100 \]

5. **Conclusion**:
- The Dorbish Bowley’s Price Index Number is \( 100 \) in this example.
- If the question provides specific values, replace them accordingly to find the actual index number.