Question
For the following data, use the weighted average of price relative method to construct the index number for theyear 2010, taking the year 2005 as the base year.
CommodityWeight (W)Price in $2005\left( P _0\right)$Price in $2007\left( P _1\right)$
E152230
F121518
G81720
H171215
I202532

Answer

CommodityWeight (W)Price in $2005\left( P _0\right)$Price in $2010\left(P_1\right)$$R =\frac{P_1}{P_0} \times 100$RW
E152230136.362,045.40
F1215181201440
G81720117.64941.12
H1712151252,125
I2025321282,526

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