Question
Using the simple aggregative method, calculate the index number for the given data:
  A B C D
$P_1$ 15 22 20 27
$P_0$ 10 20 18 25

Answer

Construction of Index number:
Commodity
$p_o ($Base Year$)$
$p_1 ($Current Year$)$
A
10
15
B
20
22
C
18
20
D
25
27
 
$\Sigma\text{p}_0=73$
$\Sigma\text{p}_1=84$
$\text{P}_{01}=\frac{\Sigma\text{p}_1}{\Sigma\text{p}_0}\times100\Rightarrow\text{P}_{01}=\frac{84}{73}\times100=115.0$

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