Question

Q. 5 Study the following situation and express your opinion.
Case I
There are 5 commodities as A, B, C, D, and E. the price for the year 2006 and 2010 are given in table.
you have to calculate simple index by using formula
Commodities
price in RS 2006
Price in Rs 2010
30
A
20
30
B
45
C
60
50
D
75
60
90
300
200
(1) What is the formula for constructing simple index number?
(2) What is the value of Epo and Epl ?
(3) Which year we can consider as the base year from the above table ?
(4) Give your opinion about the price of commodities increased or decreased and by how much
percentage ?
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Answer 1

Answer:

po1 = sigma p1 divided by sigma p0 × 100