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In simple aggregative method of constructing index numbers, price index can be given as $P_{01}=\frac{\sum P_1}{\sum P_o} \times 100$ What does $\sum P_O$ represent? |
Index numbers of current year Sum of prices of all items of current year Sum of prices of all items in base year Sum of prices under consideration time of previous years. |
Sum of prices of all items in base year |
The correct answer is Option (3) → Sum of prices of all items in base year $P_{01} = \frac{\sum P_1}{\sum P_0} \times 100$ $\sum P_0 \text{ represents sum of prices in the base year}$ $\sum P_0 = \text{Sum of prices of all items in base year}$ |
