Question

Find Price Index Number using Simple Aggregate method by taking 2005 as base year.

Commodity	P	Q	R	S	T
Price in 2005 (in ₹)	10	25	14	20	30
Price in 2015 (in ₹)	32	40	20	45	70

Answer 1

Commodity	Price in 2005 (in ₹) (Base year) p0	Price in 2015(in ₹) (Current year p1)
P	10	32
Q	25	40
R	14	20
S	20	45
T	30	70
Total	99	207

From the table `sum"p"_0` = 99, `sum"p"_1` = 207

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

= `207/99 xx 100`

= 209.09