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Sum
Calculate the cost of living index in problem
| Group | Base Year | Current Year | |
| Price | Quantity | Price | |
| Food | 120 | 15 | 170 |
| Clothing | 150 | 20 | 190 |
| Fuel & Lighting | 130 | 30 | 220 |
| House Rent | 160 | 10 | 180 |
| Miscellaneous | 200 | 12 | 200 |
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Solution
| Group | Base Year | Current Year | p1q0 | p0q0 | |
| p0 | q0 | P1 | |||
| Food | 120 | 15 | 170 | 2550 | 1800 |
| Clothing | 150 | 20 | 190 | 3800 | 3000 |
| Fuel & Lighting | 130 | 30 | 220 | 6600 | 3900 |
| House Rent | 160 | 10 | 180 | 1800 | 1600 |
| Miscellaneous | 200 | 12 | 200 | 2400 | 2400 |
| Total | – | – | – | 17150 | 12700 |
From the table,
`sum"p"_1"q"_0 = 17,150, sum"p"_0"q"_0 = 12,700`
Now, by Aggregate Expenditure Method,
CLI = `(sum"P"_1"q"_0)/(sum"p"_0"q"_0) xx 100`
= `(17150)/(12700) xx 100`
= 135.04
Concept: Method of Constructing Cost of Living Index Numbers - Aggregative Expenditure Method
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