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Sum

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

Assume 2000 to be base year in the following problem.

Fruit |
Unit |
Price (in ₹) in 2000 |
Price (in ₹) for 2007 |

Mango | doz | 250 | 300 |

Banana | doz | 12 | 24 |

Apple | kg | 80 | 110 |

Peach | kg | 75 | 90 |

Orange | doz | 36 | 65 |

Sweet Lime | doz | 30 | 45 |

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#### Solution

Fruit |
Unit |
Price in 2000(Base year) p _{0} |
Price in 2007 (current year) p _{1} |

Mango | doz | 250 | 300 |

Banana | doz | 12 | 24 |

Apple | kg | 80 | 110 |

Peach | kg | 75 | 90 |

Orange | doz | 36 | 65 |

Sweet Lime | doz | 30 | 45 |

Total | 483 | 634 |

From the table, ∑ p_{0} = 483, ∑ p_{1} = 634

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

`= 634/483 xx 100`

= 131.26

Concept: Construction of Index Numbers

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