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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`
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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
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