Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

Find the consumer price index for 2014 on the base of 2008, from the following data. Using the method of weighted relatives.

Item Food Rent Clothing Fuel Miscellaneous
Price in 2008 (in ₹) 200 100 150 50 100
Price in 2914 (in ₹) 280 200 120 100 200
Weight 30 20 20 10 20
Options:

155

158

160

164

Correct Answer:

158

Explanation:

The correct answer is option (2) : 158

Price relative

$I=\frac{p_1}{p_0}×100$

$Iw$

140

200

80

200

200

 

4200

4000

1600

2000

400

$∑Iw= 15800$

 

∴Index number $=\frac{∑Iw}{∑w}=\frac{15800}{100}= 158$