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. Discuss the techniques to manage risks? Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of the four major categories li

As an investor, what factors would you consider before investing in the emerging stock market of a developing country? Answer:  An investor in emerging market stocks requirements

Full, Fair and Adequate Disclosure The architecture of business has evolved from proprietorship to partnership to joint stock companies or publicly held companies. Except fro

How many types of segments in the mutual fund industry? There are two segments into the mutual fund industry: long-term funds and short-term funds. In Long-term funds bond fund

What is the decision rule for accepting or rejecting proposed projects when using net present value? When going with the net present value decision rule any project with a net

Q. Three-phase source voltages and phase sequence? The elementary three-phase, two-pole generator shown in Figure has three identical stator coils (aa, bb, and cc) of one or

that the business has far fewer linens than it needs, so he makes a major linen purchase on open account. Which of the following terms refers to the fact that partners Ma and Runni

Q. Explain Accept-Reject Criteria? Accept-Reject Criteria:- If actual ARR is elevated than the predetermined rate of return .......................Project would be accep

Q. Rate of the growth of the business? The working capital requirement of the a concern increase with the growth and expansion of the business activity although it is difficu

SCL Limited a highly profitable company is engaged in the manufacture of power intensive products.