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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.
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