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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`

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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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