The Drobisch-Bowley price index formula is –
2021
The Drobisch-Bowley price index formula is –
- A.
Geometric mean of Laspeyres’ and Paasche’s index formula
- B.
Arithmetic mean of Laspeyres’ and Paasche’s index formula
- C.
Weighted mean of Laspeyres’ and Paasche’s index formula
- D.
None of the above
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Show answer & explanation
Correct answer: B
The Drobisch-Bowley price index is defined as the arithmetic mean of the Laspeyres and Paasche indices. It is calculated by adding both indices together and dividing the sum by two.