THOTH

Statistics 2 Formula Book

For 2nd PUC Students
Vipin Srinath 1/1/2011

Statistics 2 Formula Book

For 2nd PUC Students Vipin Srinath

Chapter 1 Index Numbers

Price Relative = p1 = price in current year p0 = price in base year To be expressed in the form of a percentage. Simple Un-weighted Price Index Numbers 1. Simple average of relatives: i. Un-weighted Arithmetic Mean 01 = P denotes price relative ii. Un-weighted Geometric Mean 01 = 1 100 0

2. Simple aggregative index number 01 = 100

Statistics 2 Formula Book

For 2nd PUC Students Vipin Srinath

Weighted Price Index Numbers 1. Weighted Average of Relatives i. The weighted arithmetic mean is 01 =

ii.

The weighted geometric mean is 01 =

2. Weighted Aggregative Index Numbers i. Laspeyres Price Index Number 01 = 1 0 100 0 0

ii.

Paasches Price Index Number 01 = 1 1 100 0 1

iii.

Marshall Edgeworth Price Index Number 01 = 1 0 + 0 0 + 1 1 100 0 1

iv.

Dorbish Bowley Price Index Number 01 = 1 2 1 0 + 0 0 1 1 0 1 100

Statistics 2 Formula Book

For 2nd PUC Students Vipin Srinath

v.

Fishers Price Index Number 1 0 0 0 1 1 0 1

01 =

100

vi.

Laspeyres Quantity Index Number 01 = 1 0 100 0 0

vii.

Paasches Quantity Index Number 01 = 1 1 100 0 1

viii.

Marshall Edgeworth Quantity Index Number 01 = 1 0 + 0 0 + 1 1 100 0 1

ix.

Dorbish Bowley Quantity Index Number 01 = 1 2 1 0 + 0 0 1 1 100 0 1

Statistics 2 Formula Book

For 2nd PUC Students Vipin Srinath

x.

Fishers Quantity Index Number 1 0 0 0 1 1 100 0 1

01 =

Statistics 2 Formula Book

For 2nd PUC Students Vipin Srinath

Tests for an Index Number 1. Time Reversal Test (TRT) 01 10 = 1 P01 and P10 are expressed as mere ratios. Time reversal test is not satisfied by Laspeyres, Paasches and Dorbish Bowley Index numbers. It is satisfied by only Marshall Edgeworth and Fishers Index Number.

2. Factor Reversal Test (FRT) 01 01 = 1 1 0 0

P01 and Q10 are expressed as mere ratios. Time reversal test is not satisfied by Laspeyres, Paasches, and Marshall Edgeworth and Dorbish Bowley Index numbers. It is satisfied by only Fishers Index Number.

Consumer Price Index Number (Cost of Living Index Number) 1. Aggregative Expenditure Method 01 = 100 Or 01 = 1 0 100 0 0

2. Family Budget Method 01 =