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Sum

**Find the Price Index Number using Simple Aggregate Method in the following example.**

Use 1995 as base year in the following problem.

Commodity |
P | Q | R | S | T |

Price (in ₹) in 1995 |
15 | 20 | 24 | 23 | 28 |

Price (in ₹) in 2000 |
27 | 38 | 32 | 40 | 45 |

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#### Solution

Commodity |
Price in 1995(Base year) p_{0} |
Price in 2000(Current year)p_{1} |

P | 15 | 27 |

Q | 20 | 38 |

R | 24 | 32 |

S | 23 | 40 |

T | 28 | 45 |

Total | 110 | 182 |

From the table, ∑ p_{0} = 110, ∑ p_{1} = 182

Price Index Number (P_{01}) = `(sum "p"_1)/(sum "p"_0) xx 100`

`= 182/110 xx 100`

= 165.45

Concept: Construction of Index Numbers

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