Advertisements
Advertisements
Question
Solve the following problem :
Find the cost of living index number by Family Budget Method for the following data. Also, find the expenditure of a person in the year 2008 if his expenditure in the year 2005 was ₹ 10,000.
| Group | Base Year (2005) Price |
Current Year (2008) Price |
Weight |
| Food | 12 | 60 | 25 |
| Clothing | 10 | 45 | 20 |
| Fuel and Lighting | 20 | 35 | 15 |
| House Rent | 25 | 20 | 30 |
| Miscellaneous | 16 | 48 | 10 |
Solution
| Group | 2005 Base Year |
2008 Current Year |
I = `"p"_1/"p"_0 xx 100` | W | IW |
| p0 | p1 | ||||
| Food | 12 | 60 | `(60)/(12) xx 100` = 500 | 25 | 12500 |
| Clothing | 10 | 45 | `(45)/(10) xx 100` = 450 | 20 | 9000 |
| Fuel and Lighting | 20 | 35 | `(35)/(20) xx 100` = 175 | 15 | 2625 |
| House Rent | 25 | 20 | `(20)/(25) xx 100` = 80 | 30 | 2400 |
| Miscellaneous | 16 | 48 | `(48)/(16) xx 100` = 300 | 10 | 3000 |
| Total | – | – | – | 100 | 29525 |
From the table,
`sum"W" = 100, sum"IW" = 29525`
Now, by Family Budget Method,
CLI = `(sum"IW")/(sum"W")`
= `(29525)/(100)`
= 295.25
`"Expenditure in 2008"/"Expenditure in 2005" = "CLI of 2008"/(100)`
∴ `"Expenditure in 2008"/(10,000) = (295.25)/(100)`
∴ Expenditure in 2008 = `10,000 xx (295.25)/(100)` = 29,525
∴ Cost of Living Index = 295.25 and Expenditure in 2008 = ₹ 29,525
APPEARS IN
RELATED QUESTIONS
Base year weights (W) and current year price relatives (I) are given in Problem. Calculate the cost of living index in:
| Group | Food | Clothing | Fuel & Lighting | House Rent | Miscellaneous |
| I | 70 | 90 | 100 | 60 | 80 |
| W | 5 | 3 | 2 | 4 | 6 |
Base year weights (W) and current year price relatives (I) are given in Problem. Calculate the cost of living index in:
| Group | Food | Clothing | Fuel & Lighting | House Rent | Miscellaneous |
| I | 400 | 300 | 150 | 120 | 100 |
| W | 3 | 3 | 4 | 5 | 2 |
Base year weights (W) and current year price relatives (I) are given in Problem. Calculate the cost of living index in:
| Group | Food | Clothing | Fuel & Lighting | House Rent | Miscellaneous |
| I | 200 | 150 | 120 | 180 | 160 |
| W | 30 | 20 | 10 | 40 | 50 |
Find x if the cost of living index is 150.
| Group | Food | Clothing | Fuel & Lighting | House Rent | Miscellaneous |
| I | 180 | 120 | 300 | 100 | 160 |
| W | 4 | 5 | 6 | x | 3 |
Base year weights (W) and current year price relatives (I) are given in Problem. Calculate the cost of living index in:
Find y if the cost of living index is 200.
| Group | Food | Clothing | Fuel & Lighting | House Rent | Miscellaneous |
| I | 180 | 120 | 160 | 300 | 200 |
| W | 4 | 5 | 3 | y | 2 |
Solve the following problem :
Find the cost living index number by the Weighted Aggregate Method.
| Group | Food | Clothing | Fuel & Lighting | House Rent | Miscellaneous |
| I | 78 | 80 | 110 | 60 | 90 |
| W | 5 | 3 | 4 | 2 | 6 |
Solve the following problem :
Find x if the cost of living index number is 193 for the following data.
| Group | Food | Clothing | Fuel & Lighting | House Rent | Miscellaneous |
| I | 221 | 198 | 171 | 183 | 161 |
| W | 35 | 14 | x | 8 | 20 |
Choose the correct alternative:
The Cost of Living Index Number using Weighted Relative Method is given by
State whether the following statement is True or False:
For Cost of Living Index Number CLI =`(sum"IW")/(sum"W")`, where I = `("P"_0)/("P"_1) xx 100` and w = p0q0
Calculate the Cost of Living Index by Family Budget method in following example where W are wages of base year and I are current year price relatives.
| Group | Food | Clothing | Fuel and Lighting |
House Rent |
Miscellaneous |
| I | 150 | 140 | 100 | 120 | 200 |
| W | 4 | 3 | 3 | 4 | 6 |
Find the missing wage if the Cost of Living Index for the following data is 150.
| Group | Food | Clothing | Fuel and Lighting |
House Rent |
Miscellaneous |
| I | 200 | 150 | 140 | 100 | 120 |
| W | 6 | 4 | x | 3 | 4 |
