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Question
Find x if the Price Index Number by Simple Aggregate Method is 125.
| Commodity | P | Q | R | S | T |
| Base Year Price (in ₹) | 8 | 12 | 16 | 22 | 18 |
| Current Year Price (in ₹) |
12 | 18 | x | 28 | 22 |
Solution
| Commodity | Base year price |
Current year price |
| p0 | p1 | |
| P | 8 | 12 |
| Q | 12 | 18 |
| R | 16 | x |
| S | 22 | 28 |
| T | 18 | 22 |
| Total | 76 | x + 80 |
From the table, `sum "p"_0 = 76, sum "p"_1 = "x" + 80`
Given, Price Index Number (P01) = 125
Since `"P"_01 = (sum "p"_1)/(sum "p"_0) xx 100`
`125 = ("x + 80")/76 xx 100`
∴ 125 × 76 = (x + 80) × 100
∴ 9500 = 100(x + 80)
∴ 95 = x + 80
∴ x = 95 - 80
∴ x = 15
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