BUSINESS

STATISTICS
ASSIGNMENT

SUBMITTED TO: SUBMITTED BY:

DR. KULWINDER SINGH ARJUN CHAWLA

(M.B.A. – B)
Comodity 2011 2012 2013 2014 2015 2016
Price 234 245 243 235 256 260
A
Quantity 1999 1876 2044 2367 2388 2478
Price 456 460 475 487 489 490
B
Quantity 1200 1400 1903 1894 1944 2034
Price 237 240 265 270 275 300
C
Quantity 1755 1876 2044 2366 2388 2478
Price 546 525 549 542 566 576
D
Quantity 1200 1300 1800 1894 1950 2030
Price 335 456 577 563 643 745
E
Quantity 1100 1300 1902 1895 1950 2050

Price Sum 1808 1926 2109 2097 2229 2371

Quantity Sum 7254 7752 9693 10416 10620 11070

Value = Price × Quantity

Comodity 2011 2012 2013 2014 2015 2016
A P×Q= 467766 459620 496692 556245 611328 644280
B P×Q= 547200 644000 903925 922378 950616 996660
C P×Q= 415935 450240 541660 638820 656700 743400
D P×Q= 655200 682500 988200 1026548 1103700 1169280
E P×Q= 368500 592800 1097454 1066885 1253850 1527250
Sum 2454601 2829160 4027931 4210876 4576194 5080870

Answer 1: Change in Prices, Quantity and Value from year 2016

2011 2012 2013 2014 2015 2016
Price index 76 81 89 88 94 100
Quantity index 66 70 88 94 96 100
value index 48 56 79 83 90 100

Answer 4: Change in Prices, Quantity and Value from year 2011

2011 2012 2013 2014 2015 2016
Price index 100 107 117 116 123 131
Quantity index 100 107 134 144 146 153
value index 100 115 164 172 186 207

(i) Taking base year as 2016 the changes in year 2012 and 2013 are more drastic than changes compared
to other years and taking on individual accounts the value index shows maximum change along the
years as compared to price index and quantity index.
(iv)Taking base year as 2011 we see that as year’s proceeds price index, quantity index and value index
increases. The price increase is minimum whereas quantity increase is 1.5 times, change in value is twice
the base year .

Answer 2: Change in Purchasing Power can be estimated using Price Index

Year 2011 2012 2013 2014 2015 2016
Income 40577 43845 44044 45012 46098 49038
Index no. 100 108 109 111 114 121
Deflated Value 40577 40597.22 40407.34 40551.35 40436.84 40527.27
Index 83 89 90 92 94 100
Actual Adjusted Income= 48863.86 49264.04 48937.78 48926.09 49040.43 49038

(ii) The change in purchasing power is evident, we have taken the base year as 2011 and then as 2016.
When base is 2011 we see that though the income is increasing but the deflated value tell us that the
real purchasing power is not increasing and in fact has decreased. When base year is 2016 we see that
though the money earned was less as compared to today but the purchasing power was more as
compared to today.
 p0q0 p1q1 p2q2 p3q3 p4q4 p5q5
a 467766 459620 496692 556245 611328 644280
b 547200 644000 903925 922378 950616 996660
c 415935 450240 541660 638820 656700 743400
d 655200 682500 988200 1026548 1103700 1169280
e 368500 592800 1097454 1066885 1253850 1527250
Sum 2454601 2829160 4027931 4210876 4576194 5080870

p1q0 p2q0 p3q0 p4q0 p5q0

a 489755 485757 469765 511744 519740
b 552000 570000 584400 586800 588000
c 421200 465075 473850 482625 526500
d 630000 658800 650400 679200 691200
e 501600 634700 619300 707300 819500
sum 2594555 2814332 2797715 2967669 3144940

p0q1 p0q2 p0q3 p0q4 p0q5

a 438984 478296 553878 558792 579852
b 638400 867768 863664 886464 927504
c 444612 484428 560742 565956 587286
d 709800 982800 1034124 1064700 1108380
e 435500 637170 634825 653250 686750
sum 2667296 3450462 3647233 3729162 3889772

Answer 3
2011 2012 2013 2014 2015 2016
Laspeyers index 121 106 115 114 121 128
Paasche's index 100 106 117 115 123 131
Fischersindex 110 106 116 115 122 129
Income 40577 43845 44044 45012 46098 49038
Actual Income
36888.18 41363.21 38070.38 39238.51 37845.85 37906.18

(iii) We calculate the index number using Laspeyer’s Index and Paasche’s Index and to remove the
biasness we calculate the Fischer’s Index and using Fischer’s index we calculate the actual income of the
consumer.
 Answer 5: Change in Price level can be confrmed by using splicing

Value in 2000 of second index upon value in 2000 of first index = 100/187 = 0.5347
Value in 2000 of first index upon value in 2000 of second index = 187/100 = 1.87

1991 100 53
1992 123 66
1993 135 72
1994 130 70
1995 149 80
1996 158 84
1997 176 94
1998 180 96
1999 185 99
2000 187 100 2000 100 187
2001 195 104 2001 106 198
2001 199 106 2002 110 206
2003 115 215
2004 120 224
2005 125 234
2006 121 226
2007 129 241
2008 131 245
2009 135 252
2010 144 269
2011 156 292
2012 165 309
2013 176 329
2014 189 353
2015 198 370
2016 219 410

(v) The change in price level from using first and second index respectively is found using the splicing
method first using first index as base then using the second index as base.