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. Use 2000 as 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.

Use 2000 as base year in the following problem.

Commodity Price (in ₹) for
year 2000
Price (in ₹) for year 2006
Watch 900 1475
Shoes 1760 2300
Sunglasses 600 1040
Mobile 4500 8500
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Solution

Commodity Price (in ₹) for
year 2000
Price (in ₹) for year 2006
Watch 900 1475
Shoes 1760 2300
Sunglasses 600 1040
Mobile 4500 8500
Total 7760 13315

From the table, ∑ p0 = 7760, ∑ p1 = 13315

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

`= (13,315)/(7,760) xx 100`

= 171.59

Concept: Construction of Index Numbers
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