For the following data, use the weighted average of price relativ… - Vidyadip

Question

For the following data, use the weighted average of price relative method to construct the index number for theyear 2010, taking the year 2005 as the base year.

Commodity	Weight (W)	Price in $2005\left( P _0\right)$	Price in $2007\left( P _1\right)$
E	15	22	30
F	12	15	18
G	8	17	20
H	17	12	15
I	20	25	32

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Answer

Commodity	Weight (W)	Price in $2005\left( P _0\right)$	Price in $2010\left(P_1\right)$	$R =\frac{P_1}{P_0} \times 100$	RW
E	15	22	30	136.36	2,045.40
F	12	15	18	120	1440
G	8	17	20	117.64	941.12
H	17	12	15	125	2,125
I	20	25	32	128	2,526

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