Question

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

Commodity	I	II	III	IV	V
Base Year Quantities	140	120	100	200	225
Current Year Quantities	100	80	70	150	185

Answer 1

Commodity	Base Year Quantities q0	Current Year Quantities q1
I	140	100
II	120	80
III	100	70
IV	200	150
V	225	185
Total	785	585

From the table, ∑ q₀ = 785, ∑ q₁ = 585

Price Index Number (Q₀₁) = `(sum "q"_1)/(sum "q"_0) xx 100`

`= 585/785 xx 100`

= 74.52