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Index Numbers — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIndex Numbers4 Marks
Question
Construct the index number by simple average of price relative method and by simple aggregative method:
Commodity
A
B
C
D
E
Price in 2014 (₹)
16
40
35
5.25
2
Price in 2015 (₹)
20
60
50
6.25
1.5
✓

Answer

Construction of Index Number:
Commodity Price in 2014 (₹)($p_0)$ Price in 2015 (₹) ($P_1)$ $\text{I}\bigg(\frac{\text{p}_1}{\text{p}_0}\times100\bigg)$
A 16 20 125
B 40 60 150
C 35 50 142.9
D 5.25 6.25 119.05
E 2 1.50 75
n = 5 $\Sigma\text{p}_0=98.25$ $\Sigma\text{p}_1=137.75$ $\Sigma\text{I}=611.95$
  1. Simple Aggretive Methode of Price Relative Methode:
$\text{P}_{01}=\frac{\Sigma\text{I}}{\text{n}}=\frac{611.95}{5}=122.39$
  1. Simple Aggretive Methode:
$\text{P}_{01}=\frac{\Sigma\text{p}_1}{\Sigma\text{q}_0}\times100=\frac{137.75}{98.25}\times100=140.20$

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