QS calculate price index by simple Aggregate method and price Relative method
Commodity A B C DE F Price in 2011 20 30 10 25 40 50 Price in 2019 25 30 15 35 45 55
Answers
Answer:
Question 1
Taking 2004 as base year, construct the index numbers of the years 2005 and 2009.
Year
2004
2005
2006
2007
2008
2009
Price
10
14
16
20
22
24
Solution 1
Question 2
Construct index number by Price Relative Method taking 2004 as base year.
Price per Unit in Rs
Year
A
B
C
D
2004
25
18
16
21
2012
20
22
24
22
2013
25
20
25
25
2014
28
24
30
26
Solution 2
Question 3
Compute a Price Index for the following by (i) Simple Aggregative Method, and (ii) Average of Price Relative Method :
Commodities
A
B
C
D
E
F
Price in 2009 (Rs.)
20
30
10
25
40
50
Price in 2014 (Rs.)
25
30
15
35
45
55
Solution 3
Chapter 13 - Index Numbers Exercise 371
Question 1
Construct price index number of the following data by using :
(i) Laspeyre's Method, (ii) Paasche's Method, and (iii) Fisher's Method.
Items
Base Year
Current Year
Quantity
Price
Quantity
Price
A
3
5
2
8
B
7
4
5
6
C
4
7
3
10
D
6
6
5
7
Solution 1
Question 2
Construct an index number for the year 2014, taking 2004 as base year by any method you deem ideal:
Year
Good I
Good II
Good III
Price
Quantity
Price
Quantity
Price
Quantity
2004
5
10
8
6
6
3
2014
4
12
7
7
5
4
Solution 2
Solution 3
Question 4
Construct a weighted index number of the following data using price relative method :
Item
A
B
C
D
E
Base Year (Quantity)
24
14
8
4
8
Base Year (Price)
2
4
6
10
5
Current Year (Price)
3
5
9
12
5
Solution 4
Question 5
Find out the index number of the following data with Laspeyre's Method :
Commodity
2013
2014
Price
Quantity
Price
Quantity
A
70
7
80
6
B
62
3
74
2
Solution 5
Chapter 13 - Index Numbers Exercise 372
Question 1
Construct index numbers of the following data with Laspeyre's and Paasche's Methods :
Commodity
Base Year
Current Year
Price
Quantity
Price
Quantity
A
10
0.80
11
0.70
B
8
0.85
9
0.90
C
5
1.30
5.5
0.80
Solution 1
Solution 2
Question 3
Construct Cost of Living Index on the basis of the following data :
Items
Price
Weight
Wheat
241
10
Rice
150
4
Maida
200
2
Pulses
170
2
Oil
125
2
Solution 3
Question 4
Construct Cost of Price Index Number with the help of the following data :
Items
Price
Weight
Food
125
40
Fuel
120
10
Cloth
66.67
25
House Rent
120
15
Miscellaneous
150
10
Solution 4
Chapter 13 - Index Numbers Exercise 373
Solution 1
Question 2
Construct Cost of Living Index Number for the year 2014 from the following statistics :
Commodity
2004 Price
2004 Quantity
2014 Price
A
25
16.0
35
B
36
7.0
48
C
12
3.5
16
D
6
2.5
10
E
28
4.0
28
Solution 2
Solution 3
Yes, as per aggregate expenditure method, CPI is 113.33. On the contrary, family budged method gives CPI as 145.64. The difference is equal to 32.31.
Solution 4
Chapter 13 - Index Numbers Exercise 374
Solution 1
Question 2
Construct index number of industrial production from the following data :
Industry
Number of Items
Weight
Base Year
Current Year
Mining and Quarrying
35
107
10
Manufacturing
413
1225
85
Electricity and Electronics
10
27
15
Explanation:
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