Question

Solve the following problem :

Find the Price Index Number using Simple Aggregate Method. Consider 1980 as base year.

Commodity	Price in 1980 (in ₹)	Price in 1985 (in ₹)
I	22	46
II	38	36
III	20	28
IV	18	44
V	12	16

Answer 1

Commodity	Price in 1980 (in ₹) (Base year)	Price in 1985 (in ₹) (Current year)
I	22	46
II	38	36
III	20	28
IV	18	44
V	12	16
Total	110	170

From the table, `sum"p"_0 = 110, sum"p"_1 = 170`

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

= `(170)/(110) xx 100`

= 154.55