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State True or False: Walsh’s Price Index...

State True or False: Walsh’s Price Index Number is given by
`(sump_1sqrt(q_0q_1))/(sump_0sqrt(q_0q_1))xx100`

Text Solution

AI Generated Solution

The correct Answer is:
To determine whether the statement about Walsh’s Price Index Number is true or false, we need to analyze the given expression and compare it with the standard definition of Walsh's Price Index. ### Step-by-Step Solution: 1. **Understanding the Components**: - Let \( P_0 \) be the price in the base period. - Let \( P_1 \) be the price in the current period. - Let \( Q_0 \) be the quantity in the base period. - Let \( Q_1 \) be the quantity in the current period. 2. **Walsh’s Price Index Formula**: - The formula for Walsh’s Price Index Number is given by: \[ W = \frac{\sum p_1 \sqrt{q_0 q_1}}{\sum p_0 \sqrt{q_0 q_1}} \times 100 \] - Here, the numerator represents the weighted average price in the current period, and the denominator represents the weighted average price in the base period. 3. **Comparing with the Given Expression**: - The expression provided in the question is: \[ \frac{\sum p_1 \sqrt{q_0 q_1}}{\sum p_0 \sqrt{q_0 q_1}} \times 100 \] - This matches exactly with the standard formula for Walsh’s Price Index. 4. **Conclusion**: - Since the expression given in the question is indeed the correct formula for Walsh’s Price Index Number, we conclude that the statement is **True**. ### Final Answer: **True**
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Similar Questions

Explore conceptually related problems

Given the following table, find Walsh’s Price Index Number by completing the activity. Walsh’s price Index Number is P_(01)(w)=(.....)/(sump_0sqrt(q_0q_1))xx100 = (510)/(.....) xx100 = square

State True or False: (sump_0sqrt(q_0+q_1))/(sump_1sqrt(q_0+q_1)) is Marshall-Edgeworth Price Index Number.

Knowledge Check

  • (sump_1q_1w)/(sump_0q_0w)xx100 gives

    A
    Value Index Number by Simple Aggregate method
    B
    Value Index Number by Weighted Aggregate method
    C
    Cost of Living Index Number
    D
    Laspeyre’s Index Number
  • The formula p_(01)=(sump_1q_0)/(sump_0q_0)xx100 is for

    A
    Laspeyre’s Price Index Number
    B
    Paasche’s Price Index Number
    C
    Fisher’s Price Index Number
    D
    Walsh’s Price Index Number
  • P_(01)=(sump_(1)q_(0))/(sump_(0)q_(0))xx100 is the formula of:

    A
    Laspeyre's Method
    B
    Paasche's Method
    C
    Fisher's Method
    D
    none of these
  • Similar Questions

    Explore conceptually related problems

    State true or False: sum(p_1q_1)/(p_0q_1)xx100 is Paasche’s Price Index Number.

    Given the following table, find the Cost of living Index Number using Aggregate Expenditure Method bycompleting the activity. Therefore Cost of Living Index using Aggregate Expenditure method is CLI = (sump_1q_0)/(sump_0q_0)xx100 = square

    State True or False: sum(q_1)/(q_0)xx100 is the Quantiy Index Number by Simple Aggregate Method.

    For Cost of Living Index Number CLI = (sumlW)/(sum) , where I=(p_0)/(p_1) xx100 and w = p_0q_0

    sqrt(x^(p-q))sqrt(x^(q-r))sqrt(x^(r-p))=1