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

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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) p0
Price in 2000
(Current year)p1
P 15 27
Q 20 38
R 24 32
S 23 40
T 28 45
Total 110 182

From the table, ∑ p0 = 110, ∑ p1 = 182

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

`= 182/110 xx 100`

= 165.45

  Is there an error in this question or solution?
Chapter 5: Index Numbers - Exercise 5.1 [Page 77]

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