Question
Calculate the price index number based for the following data.
✓
Answer
Calculate the price index number
where, $P _{01}=$ Price Index
$ \Sigma p _1=\text { Sum total of current year prices of all commodities }$
$\Sigma p _0=\text { Sum total of base year prices of all commodities }$
$p _{01}=\frac{\Sigma p_1}{\Sigma p_0} \times 100$
$==\frac{400}{310} \times 100$
$=129.03 g$
$\text { Hence, } P _{01}=129.03 g $
where, $P _{01}=$ Price Index
$ \Sigma p _1=\text { Sum total of current year prices of all commodities }$
$\Sigma p _0=\text { Sum total of base year prices of all commodities }$
$p _{01}=\frac{\Sigma p_1}{\Sigma p_0} \times 100$
$==\frac{400}{310} \times 100$
$=129.03 g$
$\text { Hence, } P _{01}=129.03 g $
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