Question

Find x if the Price Index Number by Simple Aggregate Method is 125:

Commodity	P	Q	R	S	T
Base Year Price (in ₹)	10	8	12	24	18
Current Year Price (in ₹)	14	10	x	28	22

Answer 1

Commodity	Base year price (in ₹) p0	Current year price (in ₹) p1
P	10	14
Q	8	10
R	12	x
S	24	28
T	18	22
Total	72	74 + x

From the table, `sum"p"_0` = 72, `sum"p"_1` = 74 + x

P₀₁ = `(sum"p"_1)/(sum"p"_0) xx100`

125 = `(74 + x)/72 xx 100`

∴ `(74 + x)/72 = 125/100`

∴ 74 + x = `5/4 xx 72`

∴ x = 90 – 74

∴ x = 16