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Find the Price Index Number using the Simple Aggregate Method in the following example. Use 2005 as base year in the following problem. - Mathematics and Statistics

Sum

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

Use 2005 as base year in the following problem.

Vegetable Unit Price (in ₹)  
in 2005
Price
(in ₹) for 2012
Ladies Finger kg 32 38
Capsicum kg 30 36
Brinjal kg 40 60
Tomato kg 40 62
Potato kg 16 28
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Solution

Vegetable Unit Price in 2005
(Base year) p0
Price
in 2012
(Current year) p1
Ladies Finger kg 32 38
Capsicum kg 30 36
Brinjal kg 40 60
Tomato kg 40 62
Potato kg 16 28
Total 158 224

From the table, ∑ p0 = 158, ∑ p1 = 224

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

`= 224/158 xx 100`

= 141.77

Concept: Construction of Index Numbers
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