Maharashtra State BoardHSC Commerce 12th Board Exam
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Calculate the cost of living index in problem - Mathematics and Statistics

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Sum

Calculate the cost of living index in problem

Group Base Year Current Year
  Price Quantity Price
Food 132 10 170
Clothing 154 12 160
Fuel & Lighting 164 20 180
House Rent 175 18 195
Miscellaneous 128 5 120
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Solution

Group Base Year Current Year p1q0 p0q0
  p0 q0 p1    
Food 132 10 170 1700 1320
Clothing 154 12 160 1920 1848
Fuel & Lighting 164 20 180 3600 3280
House Rent 175 18 195 3510 3150
Miscellaneous 128 5 120 600 640
Total 11330 10238

From the table,
`sum"p"_1"q"_0 = 11,330, sum"p"_0"q"_0 = 10,238`
Now, by Aggregate Expenditure Method,

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

= `(11330)/(10238) xx 100`
= 110.67

Concept: Method of Constructing Cost of Living Index Numbers - Aggregative Expenditure Method
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