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Solve the following problem : Find the Price Index Number using Simple Aggregate Method. Consider 1980 as base year. - Mathematics and Statistics

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Question

Solve the following problem :

Find the Price Index Number using Simple Aggregate Method. Consider 1980 as base year.

Commodity Price in 1980 (in ₹) Price in 1985 (in ₹)
I 22 46
II 38 36
III 20 28
IV 18 44
V 12 16
Sum

Solution

Commodity Price in 1980 (in ₹)
(Base year)
Price in 1985 (in ₹) (Current year)
I 22 46
II 38 36
III 20 28
IV 18 44
V 12 16
Total 110 170

From the table, `sum"p"_0 = 110, sum"p"_1 = 170`

Price Index Number (P01) = `(sum"p"_1)/(sum"p"_0) xx 100`

= `(170)/(110) xx 100`

= 154.55

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Chapter 5: Index Numbers - Miscellaneous Exercise 5 [Page 92]

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RELATED QUESTIONS

Quantity Index Number by Weighted Aggregate Method is given by ______.


Choose the correct alternative :

Value Index Number by Weighted Aggregate Method is given by


Fill in the blank :

Quantity Index Number by Weighted Aggregate Method is given by _______.


State whether the following is True or False :

`(sum"p"_1)/(sum"p"_0) xx 100` is the price Index Number by Simple Aggregate Method.


`sum ("p"_0"q"_0)/("p"_1"q"_1) xx 100` is Value Index Number by Simple Aggregate Method.


Solve the following problem :

Find the Quantity Index Number using Simple Aggregate Method.

Commodity Base year quantity Current year quantity
A 100 130
B 170 200
C 210 250
D 90 110
E 50 150

Explain the types of index numbers.


State whether the following statement is True or False:

`sum ("P"_1"q"_1)/("p"_0"q"_0) xx 100` is the Value Index Number by Simple Aggregate Method


Find Price Index Number using Simple Aggregate method by taking 2005 as base year.

Commodity P Q R S T
Price in 2005 (in ₹) 10 25 14 20 30
Price in 2015 (in ₹) 32 40 20 45 70

Find Quantity Index Number using Simple Aggregate method

Commodity A B C D E
Base year Quantity 170 150 100 195 205
Current year Quantity 90 70 75 150 95

Find Price Index Number using Simple Aggregate method by taking 2000 as base year

Commodity Price (in ₹) for
year 2000
Price (in ₹) for
year 2007
Watch 900 1,475
Shoes 1,760 2,300
Sunglasses 60 1,040
Mobile 4,500 8,500

Find values x and y if the Price Index Number by Simple Aggregate Method by taking 2001 as base year is 120, given `sum"p"_1` = 300.

Commodity A B C D
Price (in ₹) in 2001 90 x 90 30
Price (in ₹) in 2004 95 60 y 35

Choose the correct pair:

Group A Group B
A. Price Index (a) `(sump_1q_1)/(sump_0q_0) xx 100`
B. Value Index (b) `(sumq_1)/(sumq_0) xx 100`
C. Quantity Index (c) `(sump_1q_1)/(sump_0q_1) xx 100`
D. Paasche's Index (d) `(sump_1)/(sump_0) xx 100`

Choose the correct pair :

Group A Group B
1) Price Index a) `(sum p_1q_1)/(sum p_0q_0) xx 100`
2) Value Index b) `(sum q_1)/(sum q_0) xx 100`
3) Quantity Index c) `(sum p_1q_1)/(sum p_0 q_1) xx 100`
4) Paasche's Index d) `(sum p_1)/(sum p_0) xx 100`

Calculate the price index number for the given data.

Commodity A B
Price in 2020 (₹) 20 30
Price in 2021 (₹) 40 40

Identify and explain the concept from the given illustration:

Pooja collected information regarding a change in the quantity of imports of India from 2019 to 2020 and prepared an index number.


Choose the correct pair :

Group A Group B
1) Price Index a)

`(sump1q1)/(sump0q0)xx100`

2) Value Index b) `(sumq1)/(sumq0)xx100`
3) Quantity Index c) `(sump1q1)/(sump0q1)xx100`
4) Paasche's Index d) `(sump1)/(sump0)xx100`

State with reasons whether you agree or disagree with the following statement.

There are many types of index numbers.


Observe the following table and answer the questions given below it:

Commodities Prices in 2006 (in ₹) (Base Year) P0 Prices in 2006 (in ₹) (Current Year) P1
A 20 30
B 30 45
C 40 60
D 50 75
E 60 90

Questions:

  1. Write the formula for calculation of price index.
  2. Find the value of ∑P0 and ∑P1.
  3. Find the price index P01.

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