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A weighted aggregate quantity index

Читайте также:
  1. A weighted aggregate price index
  2. Deflating a series by price indexes
  3. Price index for a single item (Simple index number)
  4. Unweighted aggregate price index

 

Suppose that we have a group of K items. Let

be the price of item in the base period;

be the price of item in the base period;

be the price of item in the period of t

The Laspeyres quantity index for the period t is given by

 

Commonly used index numbers

A) Consumer Price Index

To most of us, inflation has come to mean increased prices and less purchasing power of dollar. The Consumer Price Index (CPI) attempts to measure the overall changes in retail prices of goods and services. The CPI uses a “market basket” of goods and services used by a typical wage earner living in a certain area. The CPI based on items grouped into seven categories, including food, housing, clothing, transportation, medical care, entertainment, and miscellaneous items.

 


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Читайте в этой же книге: Exercises | Confidence interval for the difference between the | Exercises | Distribution | Exercises | Sample size determination for the estimation of mean | Sample size determination for the estimation of proportion | Exercises | Price index for a single item (Simple index number) | Unweighted aggregate price index |
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A weighted aggregate price index| Deflating a series by price indexes

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