A weighted index number is a statistical measure used to track changes in a variable or a group of variables over time, taking into account their relative importance (weights). In economics and finance, weighted index numbers are often used to measure price levels, quantities, or other economic indicators.
The weights usually reflect the significance or share of each component in the total, providing a more accurate and relevant measure than a simple average. We can Solve the Weighted Index Numbers by various formulas like Please check the link below :
The formulas are
- Laspeyre’s Method
- Paasche’s Method
- Fisher’s (Ideal) Index Number Method
- Marshall & Edgeworth Method
- Dobrish & Bowley’s Method
- Kelly’s Method
Hope this link will simply the solution and make your understand the topics easily .
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