Question

Q3. The following are one group index numbers and the group weights for the Ahmedabad
workers for the month of January 2020. Construct the cost of living index number
Item
Food
Rent
Clothing
Fuel & Lighting
Misc.
Index No.
277
107
322
283
335
I
Weights
58
12
10
7.
4​

Answer 1

Given : group index numbers and the group weights for the Ahmedabad

workers for the month of January 2020.

To Find : cost of living index number

Solution :

Item Index number weight

Food 277 58

Rent 107 12

Clothing 322 10

Fuel & Lighting 283 7

Misc. 335 4

Index number =

$\sum (index \: numberx \times weight) \div \sum \: (weight)$

= ( 277×58 + 107 × 12 + 322×10 + 283×7 + 335×4)/(58 + 12 + 10 + 7 + 4)

= (16066 + 1284 + 3220 + 1981 + 1340 ) /91

= 23891/91

= 262.5

cost of living index number = 262.5

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