Maharashtra State BoardHSC Commerce 12th Board Exam
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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 A B C D E
Price (in ₹) in 1995 42 30 54 70 120
Price (in ₹) in 2005 60 55 74 110 140
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Solution

Commodity Price in 1995
(Base year) p0
Price in 2005
(Current year)p1
A 42 60
B 30 55
C 54 74
D 70 110
E 120 140
Total 316 439

From the table, ∑ p0 = 316, ∑ p1 = 439

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

`= 439/316 xx 100`

= 138.92

Concept: Construction of Index Numbers
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