By modifying the Chen and Wu ansatz, we have investigated some Friedmann
models in which Λ varies as ρ. In order to test the consistency of
the models with observations, we study the angular size - redshift relation for
256 ultracompact radio sources selected by Jackson and Dodgson. The angular
sizes of these sources were determined by using very long-baseline
interferometry in order to avoid any evolutionary effects. The models fit the
data very well and require an accelerating universe with a positive
cosmological constant. Open, flat and closed models are almost equally
probable, though the open model provides a comparatively better fit to the
data. The models are found to have intermediate density and imply the existence
of dark matter, though not as much as in the canonical Einstein-de Sitter
model.Comment: LaTex, 15 pages including 2 figures (Revised version appeared in CQG