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Question
Calculate the Cost of Living Index Number for the following data.
| Group | Base Year | Current Year | |
| Price | Quantity | Price | |
| Food | 40 | 5 | 20 |
| Clothing | 30 | 10 | 35 |
| Fuel and Lighting | 20 | 17 | 10 |
| House Rent | 60 | 22 | 10 |
| Miscellaneous | 70 | 25 | 8 |
Solution
Construct the following table:
| Group | Base Year | Current Year | p1q0 | p0q0 | |
| p0 | q0 | p1 | |||
| Food | 40 | 5 | 20 | 100 | 200 |
| Clothing | 30 | 10 | 35 | 350 | 300 |
| Fuel and Lighting | 20 | 17 | 10 | 170 | 340 |
| House Rent | 60 | 22 | 10 | 220 | 1320 |
| Miscellaneous | 70 | 25 | 8 | 200 | 1750 |
| Total | – | – | – | 1040 | 3910 |
From the table,
`sum"p"_1"q"_0` = 1040, `sum"p"_0"q"_0` = 3910
Now, by aggregate expenditure method,
CLI = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100`
= `1040/3910 xx 100`
= 26.59
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RELATED QUESTIONS
Calculate the cost of living index in problem
| Group | Base Year | Current Year | |
| Price | Quantity | Price | |
| Food | 120 | 15 | 170 |
| Clothing | 150 | 20 | 190 |
| Fuel & Lighting | 130 | 30 | 220 |
| House Rent | 160 | 10 | 180 |
| Miscellaneous | 200 | 12 | 200 |
Calculate the cost of living index in problem
| Group | Base Year | Current Year | |
| Price | Quantity | Price | |
| Food | 40 | 15 | 45 |
| Clothing | 30 | 10 | 35 |
| Fuel & Lighting | 20 | 17 | 25 |
| House Rent | 60 | 22 | 70 |
| Miscellaneous | 70 | 25 | 80 |
Calculate the cost of living index in problem
| Group | Base Year | Current Year | |
| Price | Quantity | Price | |
| Food | 132 | 10 | 170 |
| Clothing | 154 | 12 | 160 |
| Fuel & Lighting | 164 | 20 | 180 |
| House Rent | 175 | 18 | 195 |
| Miscellaneous | 128 | 5 | 120 |
The cost of Living Index Number using Aggregate Expenditure Method is given by ______.
Choose the correct alternative:
The Cost of Living Index Number by Aggregate Expenditure Method is same as
The Cost of Living Index Number by Aggregate Expenditure Method is given by ______
Given the following table, find the Cost of living Index Number using Aggregate Expenditure Method by completing the activity.
| Group | p0 | q0 | p1 | p0q0 | p1q0 |
| A | 23 | 4 | 25 | `square` | 100 |
| B | 15 | 5 | 20 | 75 | `square` |
| C | 5 | 9 | 8 | `square` | 72 |
| D | 12 | 5 | 18 | 60 | `square` |
| E | 8 | 6 | 13 | `square` | 78 |
| Total | – | – | – | 320 | `square` |
Therefore, Cost of Living Index using Aggregate Expenditure method is
CLI = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx square`
= `square/square xx 100`
= `square`
Calculate the cost of living index number for the following data by aggregative expenditure method:
| Group | Base year | Current year | |
| Price | Quantity | Price | |
| Food | 120 | 15 | 170 |
| Clothing | 150 | 20 | 190 |
| Fuel and lighting | 130 | 30 | 220 |
| House rent | 160 | 10 | 180 |
| Miscellaneous | 200 | 11 | 220 |
Calculate the Cost of Living Index Number for the following data.
| Group | Base Year | Current Year | |
| Price | Quantity | Price | |
| Food | 132 | 10 | 170 |
| Clothing | 154 | 12 | 160 |
| Fuel and Lighting | 164 | 20 | 180 |
| House Rent | 175 | 18 | 195 |
| Miscellaneous | 128 | 5 | 120 |
Choose the correct pair:
| Group A | Group B |
| 1) Price Index | a) `(sump_1q_1)/(sump_0q_0)xx100` |
| 2) Value Index | b) `(sumq_1)/(sumq_0)xx100` |
| 3) Quantity Index | c) `(sump_1q_1)/(sump_0q_1)xx100` |
| 4) Paasche's Index | d) `(sump_1)/(sump_0)xx100` |
