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
Functions of Treasurer:- (1) Cash Management: - It comprises the managing of cash receipts and cash payments of the business. (2) Banking Relations: - It comprises operating

QUESTION 1 [25 marks] Xelo Ltd, whose current sales consist of fixed operating costs of R140 000 and variable operating costs equal to 22% of sales, has made the following two sale

How Howan acquisition should be implemented 1. Directors of the target company must be approached first and a firm offer of a price made on condition that all due diligence wor

A firm has sales of $6,500, net income of $500, total assets of $12,000, and total equity of $700. Interest expense is $1000. What will be the common-size statement value of the in

Chu Chu Train Systems is expected to pay a $3.25 annual dividend (D1 = $3.25), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently s

Forms of Regulation There are different forms of regulation to regulate market to fulfill certain objectives. These are discussed below: Disclosure Regulation The whole

a) A product portfolio is the range of products that a business owns or the strategic business units owned by a firm. In bigger firms, like as Virgin, a broad product portfolio mig

Explain the Implicit cost of capital Implicit cost of capital can be defined as the rate of return associated with the best investment opportunity for the firm and its Shareho

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

#questiBabar Corporation''s present capital structure, which is also its target capital structure I, is 40% debt and 60% common equity. Next year''s net income is projected to be R