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Value Index Number by Simple Aggregate M...

Value Index Number by Simple Aggregate Method is given by .........

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To find the Value Index Number by the Simple Aggregate Method, we can follow these steps: ### Step-by-Step Solution: 1. **Identify Base Values**: - Let \( P_0 \) be the price of the commodity in the base year. - Let \( Q_0 \) be the quantity of the commodity in the base year. 2. **Identify Current Values**: - Let \( P_1 \) be the price of the commodity in the current year. - Let \( Q_1 \) be the quantity of the commodity in the current year. 3. **Calculate Value in Base Year**: - The value of the commodity in the base year is calculated as: \[ \text{Value in Base Year} = P_0 \times Q_0 \] 4. **Calculate Value in Current Year**: - The value of the commodity in the current year is calculated as: \[ \text{Value in Current Year} = P_1 \times Q_1 \] 5. **Calculate Value Index Number**: - The Value Index Number (VIN) can be calculated using the formula: \[ \text{Value Index Number} = \frac{\text{Value in Current Year}}{\text{Value in Base Year}} \times 100 \] - Substituting the values we calculated: \[ \text{Value Index Number} = \frac{P_1 \times Q_1}{P_0 \times Q_0} \times 100 \] ### Final Answer: The Value Index Number by the Simple Aggregate Method is given by: \[ \text{Value Index Number} = \frac{P_1 \times Q_1}{P_0 \times Q_0} \times 100 \]
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