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Question
Solve the following problem :
Calculate the cost of living number for the following data.
| Group | Base Year | Current Year | |
| Price p0 |
Quantity q0 |
Price p1 |
|
| Food | 150 | 13 | 160 |
| Clothing | 170 | 18 | 150 |
| Fuel and Lighting | 175 | 10 | 190 |
| House Rent | 200 | 12 | 210 |
| Miscellaneous | 210 | 15 | 260 |
Solution
| Group | Base Year | Current Year | p0q0 | p1q0 | |
| p0 | q0 | p1 | |||
| Food | 150 | 13 | 160 | 1950 | 2080 |
| Clothing | 170 | 18 | 150 | 3060 | 2700 |
| Fuel and Lighting | 175 | 10 | 190 | 1750 | 1900 |
| House Rent | 200 | 12 | 210 | 2400 | 2520 |
| Miscellaneous | 210 | 15 | 260 | 3150 | 3900 |
| Total | 12310 | 13100 | |||
From the table,
`sum"p"_0"q"_0 = 12310, sum"p"_1"q"_0 = 13,100`
Now, by Aggregate Expenditure Method,
CLI = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100`
= `(13,100)/(12,310) xx 100`
= 106.42
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