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Construct a weighted index number of …

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Construct a weighted index number of the following data using price reletive 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

Posted by Deepak Sharma 8 years, 2 months ago

CBSE > Class 11 > Economics

1 answers

Nishant Yadav 8 years, 2 months ago

As we know that p0 ×q0 = W and R =p1÷p0 ×100 Also p01 = sum of R ×W / sum of W Where p0 = price of base year , p1 = price of current year , q0 = quantity of base year and price relative method = sum of( weight × price relative i.e W × R ) divided by sum of weight P0 p1 q0 W ( p0 × q0 ) R W ×R 2 3 24 48 150 7200 4 5 14 56 125 7000 6 9 8 48 150 7200 10 12 4 40 120 4800 5 5 8 40 100 4000 Total 232 total = 30200 P01 = 30200 / 232 = 13.17

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