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State True or False: sum(q1)/(q0)xx100 ...

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

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To determine whether the statement "sum(q_1)/(q_0)xx100 is the Quantity Index Number by Simple Aggregate Method" is true or false, we can analyze the formula and its components step by step. ### Step-by-Step Solution: 1. **Understanding the Components**: - In the context of index numbers, \( Q_0 \) typically represents the base period quantities, while \( Q_1 \) represents the current period quantities. 2. **Formula for Quantity Index Number**: - The correct formula for the Quantity Index Number using the Simple Aggregate Method is given by: \[ \text{Quantity Index Number} = \left( \frac{\sum Q_1}{\sum Q_0} \right) \times 100 \] - This formula indicates that you should sum the current quantities (\( Q_1 \)) and divide by the sum of the base quantities (\( Q_0 \)), then multiply by 100 to express it as an index. 3. **Analyzing the Given Statement**: - The statement provided is: \[ \frac{\text{sum}(q_1)}{q_0} \times 100 \] - Here, \( q_0 \) is not summed, which is incorrect. The base quantities should be summed as \( \sum Q_0 \). 4. **Conclusion**: - Since the statement does not correctly represent the formula for the Quantity Index Number, we conclude that the statement is **False**. ### Final Answer: The statement is **False**.
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