Question

If Laspeyre’s price index number and paasche’s price index numbers are 210 and 208, then find Dorbish-Bowle’s price index no.

Answer 1

The relation between Laspeyre’s ,Paasche’s and Dorbish-bowley price index number is :

D – B = \(\frac{L+p}{2}\) × 100; 

D-B = \(\frac{210 +208}{2}\)= 209.