Home
Class 11
ECONOMICS
Compute a price index from the following...

Compute a price index from the following by (i) Simple Aggregative Method, and (ii) Average of Price Relative Method.
`{:("Commodity","A","B","C","D","E","F"),("Price in 2004 (Rs)",200,300,100,250,400,500),("Price in 2018 (Rs)",250,300,150,350,450,550):}`

Text Solution

Verified by Experts

(i) Simple Index Number - Simple Aggregative Method
`{:("Commodity","Price in 2004 (Rs)","Price in 2018 (Rs)",),(,(P_(0)),(P_(1)),),("A",200,250,),("B",300,300,),("C",100,150,),("D",250,350,),("E",400,450,),("F",500,550,),(,Sigma P_(0)"= 1,750",Sigma P_(1) "= 2,050",):}`
`P_(01) = (SigmaP_(1))/(SigmaP_(0))xx100`
` = (2,050)/(1,750) xx 100`
= 117.14

`P_(01) = (Sigma((P_(1))/(P_(0))xx100))/(N)`
` = (737.5)/(6)`
= 122.92
Promotional Banner

Topper's Solved these Questions

  • INDEX NUMBERS

    TARUN JAIN & VK OHRI|Exercise A. Multiple Choice Questions: Choose the Correct Answer|12 Videos

  • INDEX NUMBERS

    TARUN JAIN & VK OHRI|Exercise B. Choose appropriate word and fill in the blank|7 Videos

  • FREQUENCY DIAGRAMS - HISTOGRAM, POLYGON AND OGIVE

    TARUN JAIN & VK OHRI|Exercise EXERCISE NCERT|7 Videos

  • MEASURES OF CENTRAL TENDENCY - ARITHMETIC MEAN

    TARUN JAIN & VK OHRI|Exercise Illustration|72 Videos

Similar Questions

Explore conceptually related problems

Compute a price index for the following by (i) Simple Aggregative Method, and (ii) Average of Price Relative Method: {:("Commodities","A","B","C","D","E","F",),("Price in 2004 (Rs.)",20,30,10,25,40,50,),("Price in 2018 (Rs.)",25,30,15,35,45,55,):}

Given the following data and assuming 2004 as the base year, find out index value of the prices of different commodities for the year 2018 {:("Commodity","A","B","C","D","E"),("Price in 2004 (Rs)",50,40,10,5,2),("Price in 2018 (Rs)",80,60,20,10,6):}

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):}

Calculate price index from the following data by using Weighted Average Price Relative Method: {:("Commodity","Base Year Price","Current Year Price","Weights"),(" A"," 6"," 8"," 240"),(" B"," 3"," 3.2"," 240"),(" C"," 2"," 3"," 40"):}

Construct index number of prices from the following data by (i) Laspeyre's Method, (ii) Paasche's Method, and (iii) Fisher Method.

Construct a weighted index number of the following data using Price Relative Method: {:("Item","A","B","C","D","""E",),("Base Year (Quantity)",24,14,8,4,8,),("Base Year (Price)",2,4,6,10,5,),("Current Year (Price)",3,5,9,12,5,):}

Find the Consumer Price Index from the following data. Using (i) Aggregative Expenditure Method, and (ii) Family Budget Method. Is there any difference between the two results ?

Construct index number by Price Relative Method taking 2004 as base year. {:("Year","A","B","C","D"),(2004,25,18,16,21),(2016,20,22,24,22),(2017,25,20,25,25),(2018,28,24,30,26):}

The following table gives the daily income of ten workers in a factory. Find the arithmetic mean. {:("Workers",A,B,C,D,E,F,G,H,I,J),("Daily Income(in Rs.)",120,150,180,200,250,300,220,350,370,260):}