Constructing index numbers - weighted aggregates index, Financial Management

Weighted Aggregates Index 

In a weighted aggregates index, weights are assigned according to their significance and consequently the weighted index improves the accuracy of the general price level estimate based on the calculated index. Generally, the level of consumption is taken as a measure of its importance in computing a weighted aggregates index. There are various methods of assigning weights to an index. The more important ones are:

  • Laspeyres Method

  • Paasche Method

  • Fixed Weight Aggregates Method

  • Fisher's Ideal Price Method

  • Marshall-Edgeworth Method.

Posted Date: 9/17/2012 2:34:43 AM | Location : United States







Related Discussions:- Constructing index numbers - weighted aggregates index, Assignment Help, Ask Question on Constructing index numbers - weighted aggregates index, Get Answer, Expert's Help, Constructing index numbers - weighted aggregates index Discussions

Write discussion on Constructing index numbers - weighted aggregates index
Your posts are moderated
Related Questions
Q. Working Capital as a Percentage of Net Sales? This approach to estimate the working capital requirement is based on the fact that the working capital for any firm is directl

How has the merger activity in the past decade affected the concentration of assets in the banking industry? A: Over the last decade, some commercial banks declined by twenty-o

What does the "weight" refer to in the weighted average cost of capital? The weight pass on to in weighted average cost of capital refers to the portion of the total capital in

Explain the factors which company should apply Companies to be the very best must Establish what competition is doing Set the very best standards to exceed Es

If normal operating revenues are inadequate to repay the debt, liquidation of collateral may be necessary. Corporate bonds can be either secured or unsecured by c

Q. Explain about Discount Rate? Discount Rate - Rate at which INTEREST is deducted in advance of the issuance, selling, purchasing or lending of a financial instrument. Also, t

What is an LBO?  What are the risks for the equity investors and what are the potential rewards? A term leveraged buyout is a purchase of a publicly owned corporation through a s

a)  What two legal documents should the couple ensure are up-to-date if they want a sound estate plan?  What would happen if either became incapacitated or died and didn't have any

the following information related to sun ltd.paid-up capital-1000000. earnings of the co-100000. dividend paid-80000. price-earning ratio(pie)-20. no of equity shares-100000.find o

Q. Show the Present Value of a Single Flow ? Discounting or else Present Value of a Single Flow (Lump Sum):- We are able to determine the PV of a future cash flow using the for