Marshall-Edgeworth Price Index Solution

STEP 0: Pre-Calculation Summary
Formula Used
Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2
MEI = (LPI+PPI)/2
This formula uses 3 Variables
Variables Used
Marshall Edgeworth Price Index - Marshall Edgeworth Price Index is a method used to calculate the average change in the price of a basket of goods and services over time.
Laspeyres Price Index - Laspeyres Price Index is a measure used in economics to calculate the average change in the price of a fixed basket of goods and services between two periods.
Paasche Price Index - Paasche Price Index is used to measure the average change in the prices of a basket of goods and services between two periods.
STEP 1: Convert Input(s) to Base Unit
Laspeyres Price Index: 320 --> No Conversion Required
Paasche Price Index: 340 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
MEI = (LPI+PPI)/2 --> (320+340)/2
Evaluating ... ...
MEI = 330
STEP 3: Convert Result to Output's Unit
330 --> No Conversion Required
FINAL ANSWER
330 <-- Marshall Edgeworth Price Index
(Calculation completed in 00.004 seconds)

Credits

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Created by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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Satyawati College (DU), New Delhi
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19 Equity Calculators

Float-Adjusted Market Capitalisation Index
​ Go Float Adjusted Market Capitalisation = (Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)/(sum(x,1,Number of Securities in the Index,(Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)))
Market Capitalization Index
​ Go Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security)))
Laspeyres Price Index
​ Go Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100
Paasche Price Index
​ Go Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100
Altman's Z Score Model
​ Go Zeta Value = 1.2*Working Capital+1.4*Retained Earnings+3.3*Earnings Before Interest and Taxes+0.6*Market Value of Equity+1.0*Total Sales
Capital Allocation Line
​ Go Expected Return on Portfolio = ((Expected Return on Treasury Bill*Weight of Treasury Bill)+(Expected Return of Stock*Weight of Stock))*100
Justified Forward Price to Earnings Ratio
​ Go Justified Forward Price to Earnings Ratio = (Dividend/Earnings Per Share)/(Cost of Equity-Growth Rate)
Margin Call Price
​ Go Margin Call Price = Initial Purchase Price*((1-Initial Margin Requirement)/(1-Maintenance Margin Requirement))
Dividend Coverage Ratio
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Fisher Price Index
​ Go Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index)
Momentum Indicator
​ Go Momentum Indicator = (Closing Price of Particular Stock/Closing Price of Stock N Days Ago)*100
Marshall-Edgeworth Price Index
​ Go Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2
Dividend Growth Rate
​ Go Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1
Price to Cash Flow Ratio
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Maximum Leverage Ratio
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Equal Weighting
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Marshall-Edgeworth Price Index Formula

Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2
MEI = (LPI+PPI)/2

What is Marshall-Edgeworth Price Index?

The Marshall-Edgeworth Price Index is based on the geometric mean of the Laspeyres and Paasche price indexes. The Laspeyres index measures price changes by fixing the quantities consumed at a base period, while the Paasche index measures price changes by fixing the expenditure at the base period.
Alfred Marshall (1842-1924) was an English economist who is widely considered to be the father of modern neoclassical economics. Marshall’s book, Principles of Economics (1890), is one of the most influential textbooks in the history of economic thought. Francis Ysidro Edgeworth (1845-1926) was an Anglo-Irish economist and philosopher. Edgeworth was one of the earliest proponents of using statistics to analyze economic questions.

How to Calculate Marshall-Edgeworth Price Index?

Marshall-Edgeworth Price Index calculator uses Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2 to calculate the Marshall Edgeworth Price Index, The Marshall-Edgeworth Price Index formula is defined as a method used to calculate a price index, which is a measure of the average level of prices for a specified set of goods and services over a period of time. Marshall Edgeworth Price Index is denoted by MEI symbol.

How to calculate Marshall-Edgeworth Price Index using this online calculator? To use this online calculator for Marshall-Edgeworth Price Index, enter Laspeyres Price Index (LPI) & Paasche Price Index (PPI) and hit the calculate button. Here is how the Marshall-Edgeworth Price Index calculation can be explained with given input values -> 329.5 = (320+340)/2.

FAQ

What is Marshall-Edgeworth Price Index?
The Marshall-Edgeworth Price Index formula is defined as a method used to calculate a price index, which is a measure of the average level of prices for a specified set of goods and services over a period of time and is represented as MEI = (LPI+PPI)/2 or Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2. Laspeyres Price Index is a measure used in economics to calculate the average change in the price of a fixed basket of goods and services between two periods & Paasche Price Index is used to measure the average change in the prices of a basket of goods and services between two periods.
How to calculate Marshall-Edgeworth Price Index?
The Marshall-Edgeworth Price Index formula is defined as a method used to calculate a price index, which is a measure of the average level of prices for a specified set of goods and services over a period of time is calculated using Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2. To calculate Marshall-Edgeworth Price Index, you need Laspeyres Price Index (LPI) & Paasche Price Index (PPI). With our tool, you need to enter the respective value for Laspeyres Price Index & Paasche Price Index and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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