Question

In most of the weighted index numbers the weight pertains to

(i) base year

(ii) current year

(iii) both base and current year

Answer 1

In most of the weighted index numbers, the weight pertains to base year.

In the Weighted Method of calculating index numbers, different goods are accorded weights according to the quantity brought. Laspeyre’s method uses base year’s quantities as weights, Paasche’s method uses current year’s quantities as weights and Fisher's method uses both base year as well as current year’s quantities as base.
When weights are not mentioned, so we use p₀q₀ as weights.