Find the Price Index Number using Simple Aggregate Method in the following example. Use 1995 as base year in the following problem. - Mathematics and Statistics

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 22 28 Price (in ₹) in 2000 27 38 32 40 45

Solution

 Commodity Price in 1995(Base year) p0 Price in 2000(Current year)p1 P 15 27 Q 20 38 R 24 32 S 22 40 T 28 45 Total 109 180

From the table, ∑ p0 = 109, ∑ p1 = 182

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

= 182/109 xx 100

= 166.97

Concept: Construction of Index Numbers
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