The quotations for four different commodities for the years 2013 and 2018 are given below. Calculate the index number for 2018 with 2013 as the base year by using the weighted average of price relatives method.
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : 164.05
Price (in ₹) in 2013 = Base price $(p_0)$
Price (in ₹) in 2018 = Current price $(p_1)$
|
Price relative $I=\frac{p_1}{p_0}×100$ |
$Iw$ |
|
225 128 150 180
|
1125 896 900 360 $∑Iw= 3281$ |
∴Index number= $\frac{∑Iw}{∑w}=\frac{3281}{20}= 164.05$