Maharashtra State BoardHSC Commerce 12th Board Exam
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Find the Price Index Number using the Simple Aggregate Method in the following example. Assume 2000 to be base year in the following problem. - Mathematics and Statistics

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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) p0
Price
in 2007
(current year) p1
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, ∑ p0 = 483, ∑ p1 = 634

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

`= 634/483 xx 100`

= 131.26

Concept: Construction of Index Numbers
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