Question
Using the simple aggregative method, calculate the index number for the given data.
ABCD
$P_1$15222027
$P _0$10201825

Answer

Construction of Index Number
Here, we aggregate the current and the base year prices respectively and take the ratio of the two.

CommodityP0 (Base Year)P1 (Current Year)
A1015
B2022
C1820
D2527
$\Sigma p_0=73$$\Sigma p_1=84$

$P_{01}=\frac{\Sigma p_1}{\Sigma p_0} \times 100 \Rightarrow P_{01}=\frac{84}{73} \times 100=115.07$

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