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Quantity Index Number by Simple Aggregat...

Quantity Index Number by Simple Aggregate Method is given by

A

`(sum(q_1))/(sum(q_0))xx100`

B

`(sum(q_0))/(sum(q_1))xx100`

C

`(sum(q_1))/(sum(q_0))xx100`

D

`(sum(q_0))/(sum(q_1))xx100`

Text Solution

AI Generated Solution

The correct Answer is:
To find the Quantity Index Number by the Simple Aggregate Method, we can follow these steps: ### Step-by-Step Solution: 1. **Define the Variables**: - Let \( Q_0 \) be the base quantity. - Let \( Q_1 \) be the current quantity. 2. **Formula for Quantity Index Number**: - The Quantity Index Number (QIN) using the Simple Aggregate Method is given by the formula: \[ QIN = \left( \frac{\sum Q_1}{\sum Q_0} \right) \times 100 \] 3. **Calculate the Summation**: - Calculate the total of the current quantities \( \sum Q_1 \). - Calculate the total of the base quantities \( \sum Q_0 \). 4. **Substitute the Values**: - Substitute the calculated values of \( \sum Q_1 \) and \( \sum Q_0 \) into the formula. 5. **Calculate the Index Number**: - Perform the division and then multiply by 100 to get the Quantity Index Number. ### Example Calculation (Hypothetical Values): - Suppose \( \sum Q_1 = 500 \) and \( \sum Q_0 = 400 \). - Then, \[ QIN = \left( \frac{500}{400} \right) \times 100 = 125 \] ### Conclusion: - The Quantity Index Number by the Simple Aggregate Method is calculated as shown above. ---
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