Question

Calculate the cost of living index in problem

Group	Base Year		Current Year
	Price	Quantity	Price
Food	40	15	45
Clothing	30	10	35
Fuel & Lighting	20	17	25
House Rent	60	22	70
Miscellaneous	70	25	80

Answer 1

Group	Base Year		Current Year	p1q0	p0q0
	p0	q0	p1
Food	40	15	45	675	600
Clothing	30	10	35	350	300
Fuel & Lighting	20	17	25	425	340
House Rent	60	22	70	1540	1320
Miscellaneous	70	25	80	2000	1750
Total	–	–	–	4990	4310

From the table
`sum"p"_1"q"_0 = 4,990, sum"p"_0"q"_0 = 4,310`
Now, by Aggregate Expenditure Method,

CLI = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100`

= `(4990)/(4310) xx 100`
= 115.78