Index Numbers

Question

Calculate weighted index of price of the following data :

Commodity

Price

Base Period

Current Period

Weight (%)

Wheat

Rs. 10 per Kg

Rs. 15 per Kg

30

Price

Rs. 15 per Kg

Rs. 25 per Kg

40

Salt

Rs. 2 per Kg

Rs. 2.50 per Kg

2

Ghee

Rs. 40 per Kg

Rs. 60 per Kg

5

Milk

Rs. 12 per litre

Rs. 15 per litre

20

Cloth

Rs. 40 per litre

Rs. 60 per litre

30

Answer

Commodity

Price

Base Period

Current Period

Weight (%)

Price relatives

Wheat

Rs. 10 per Kg

Rs. 15 per Kg

30

Rice

Rs. 15 per Kg

Rs. 25 per Kg

40

Salt

Rs. 2 per Kg

Rs. 2.50 per Kg

2

Ghee

Rs. 40 per Kg

Rs. 60 per Kg

5

Milk

Rs. 12 per litre

Rs. 15 per litre

20

Cloth

Rs. 40 per litre

Rs. 60 per litre

3

     

ΣW = 100

Weighted Index of Price =

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