# Calculate the Cost of Living Index Number for the following data. Group Base Year Current Year Price Quantity Price Food 40 5 20 Clothing 30 10 35 Fuel and Lighting 20 17 10 House Rent 60 22 10 Misce - Mathematics and Statistics

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Calculate the Cost of Living Index Number for the following data.

 Group Base Year Current Year Price Quantity Price Food 40 5 20 Clothing 30 10 35 Fuel and Lighting 20 17 10 House Rent 60 22 10 Miscellaneous 70 25 8

#### Solution

Construct the following table:

 Group Base Year Current Year p1q0 p0q0 p0 q0 p1 Food 40 5 20 100 200 Clothing 30 10 35 350 300 Fuel and Lighting 20 17 10 170 340 House Rent 60 22 10 220 1320 Miscellaneous 70 25 8 200 1750 Total – – – 1040 3910

From the table,

sum"p"_1"q"_0 = 1040, sum"p"_0"q"_0 = 3910

Now, by aggregate expenditure method,

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

= 1040/3910 xx 100

= 26.59

Concept: Method of Constructing Cost of Living Index Numbers - Aggregative Expenditure Method
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Chapter 2.5: Index Numbers - Q.4
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