From the following table calculate the Price Index for the year 2015, with base year 2011 :
| Year |
Commodities | ||
| A | B | C | |
| 2011 | 32 | 80 | 100 |
| 2015 | 40 | 120 | 180 |
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 150
Price index for 2015 = $\frac{Price\,of\,commodities\,in\,2015}{Price\,of\,commodities\,in\,2011}×100$
Price index for A = $\frac{40}{32}×100=1.25×100=125$
Price index for B = $\frac{120}{80}×100=1.5×100=150$
Price index for C = $\frac{180}{100}×100=180$
Average Price index = $\frac{180+150+125}{3}≃150$