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Construct the price index from the follo...

Construct the price index from the following data, by taking 2004 as the base year.
`{:("Items","A","B","C","D","E"),("Price in 2004 (Rs)",6,2,4,10,8),("Price in 2018 (Rs)",15,3,8,14,16):}`

Text Solution

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`{:("Items","Price in 2004 (Rs)","Price in 2018 (Rs)",),(,(P_(0)),(P_(1)),),("A",6,15,),("B",2,3,),("C",4,8,),("D",10,14,),("E",8,16,),("Total",Sigma P_(0) = 30,Sigma P_(1) = 56,):}`
`P_(01)= (SigmaP_(1))/(Sigma P_(0))xx100`
` = (56)/(30) xx100`
`= 186.67`
Price Indix = 186.67.
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