Dorbish and Bowley’s Method.
Dorbish and Bowley have suggested simple arithmetic mean of the two indices (Laspeyres and Paasche) mentioned above so s to take into account the influence of both the periods, i.e., current as well as base periods. The formula for constructing the index is:
= L + P
Where L = Laspyres Index, P = Paasche Index
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