Question

Price Index Number by Simple Aggregate Method is given by ______.

Options

• `∑(p_1)/(p_0) × 100`

• `∑(p_0)/(p_1) × 100`

• `(∑p_1)/(∑p_0) × 100`

• `(∑p_0)/(∑p_1) × 100`

Answer 1

Price Index Number by Simple Aggregate Method is given by `bbunderline((∑p_1)/(∑p_0) × 100)`.

Explanation:

• P₁ = Current year prices
• P₀​ = Base year prices

In the Simple Aggregate Method, we take the total of current prices divided by the total of base prices, and multiply by 100.