Question

Find the Price Index Number using the Simple Aggregate Method in the following example.

Use 2000 as base year in the following problem.

Commodity	Price (in ₹) for year 2000	Price (in ₹) for year 2006
Watch	900	1475
Shoes	1760	2300
Sunglasses	600	1040
Mobile	4500	8500

Answer 1

Commodity	Price (in ₹) for year 2000	Price (in ₹) for year 2006
Watch	900	1475
Shoes	1760	2300
Sunglasses	600	1040
Mobile	4500	8500
Total	7760	13315

From the table, ∑ p₀ = 7760, ∑ p₁ = 13315

Price Index Number (P₀₁) = ${\displaystyle \frac{\sum {\text{p}}_1}{\sum {\text{p}}_0}\times 100}$

${\displaystyle =\frac{13,315}{7,760}\times 100}$

= 171.59