Question

Find the Price Index Number using Simple Aggregate Method in the following example.

Use 1995 as base year in the following problem.

Commodity	P	Q	R	S	T
Price (in ₹) in 1995	15	20	24	23	28
Price (in ₹) in 2000	27	38	32	40	45

Answer 1

Commodity	Price in 1995 (Base year) p0	Price in 2000 (Current year)p1
P	15	27
Q	20	38
R	24	32
S	23	40
T	28	45
Total	110	182

From the table, ∑ p₀ = 110, ∑ p₁ = 182

Price Index Number (P₀₁) = `(sum "p"_1)/(sum "p"_0) xx 100`

`= 182/110 xx 100`

= 165.45