Given the following table, find the Cost of living Index Number using Aggregate Expenditure Method by completing the activity. Group p0 q0 p1 p0q0 p1q0 A 23 4 25 □ 100 B 15 5 20 75 □ C 5 9 8 □ 72 D - Mathematics and Statistics

Chart
Fill in the Blanks

Given the following table, find the Cost of living Index Number using Aggregate Expenditure Method by completing the activity.

 Group p0 q0 p1 p0q0 p1q0 A 23 4 25 square 100 B 15 5 20 75 square C 5 9 8 square 72 D 12 5 18 60 square E 8 6 13 square 78 Total – – – 320 square

Therefore, Cost of Living Index using Aggregate Expenditure method is

CLI = (sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx square

= square/square xx 100

= square

Solution

 Group p0 q0 p1 p0q0 p1q0 A 23 4 25 92 100 B 15 5 20 75 100 C 5 9 8 45 72 D 12 5 18 60 90 E 8 6 13 48 78 Total – – – 320 440

Therefore, Cost of Living Index using Aggregate Expenditure method is

CLI = (sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100

= 440/320 xx 100

= 137.5

Concept: Method of Constructing Cost of Living Index Numbers - Aggregative Expenditure Method
Is there an error in this question or solution?
Chapter 2.5: Index Numbers - Q.5
Share