Question

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

Commodity	A	B	C	D	E
Base Year Quantities	360	280	340	160	260
Current Year Quantities	440	320	470	210	300

Answer 1

Commodity	Base Year Quantities q0	Current Year Quantities q1
A	360	440
B	280	320
C	340	470
D	160	210
E	260	300
Total	1400	1740

From the table, ∑ q₀ = 1400, ∑ q₁ = 1740

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

`= 1740/1400 xx 100`

= 124.29