Question

Solve the following problem :

Find the Value Index Number using Simple Aggregate Method.

Commodity	Base Year		Current Year
	Price	Quantity	Price	Quantity
I	20	42	22	45
II	35	60	40	58
III	50	22	55	24
IV	60	56	70	62
V	25	40	30	41

Answer 1

Commodity	Base Year		Current Year		p0q0	p1q1
	p0	q0	p1	q1
I	20	42	22	45	840	990
II	35	60	40	58	2100	2320
III	50	22	55	24	1100	1320
IV	60	56	70	62	3360	4340
V	25	40	30	41	1000	1230
Total	–	–	–	–	8400	10200

From the table, `sum"p"_1"q"_1 = 8,400, sum"p"_1"q"_1 = 10,200`

Value Index Number (V₀₁) = `(sum"p"_1"q"_1)/(sum"p"_0"q"_0) xx 100`

= `(10200)/(8400) xx 100`

= 121.43