Calculate index number of prices for three years with average price of three years as base and using average of price relative method from the data given below:
|
Year |
Commodity (Rate ₹ Per Unit) |
||
|
|
A |
B |
C |
|
I |
26 |
25 |
41 |
|
II |
30 |
23 |
37 |
|
III |
34 |
27 |
39 |
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Year I: 97.27, Year II: 95.62, Year III: 107.11
|
Commodity |
I |
II |
III |
Total Price |
Avg. Price |
|||
|
Price |
Relative |
Price |
Relative |
Price |
Relative |
|||
|
A |
26 |
$\frac{26}{30} \times 100 = 86.67$ |
30 |
$\frac{30}{30} \times 100 = 100$ |
34 |
$\frac{34}{30} \times 100 = 113.33$ |
90 |
30 |
|
B |
25 |
$\frac{25}{25} \times 100 = 100$ |
23 |
$\frac{23}{25} \times 100 = 92$ |
27 |
$\frac{27}{25} \times 100 = 108$ |
75 |
25 |
|
C |
41 |
$\frac{41}{39} \times 100 = 105.12$ |
37 |
$\frac{37}{39} \times 100 = 94.87$ |
39 |
$\frac{39}{39} \times 100 = 100$ |
117 |
39 |
|
Total of Price Relatives |
|
291.79 |
|
286.87 |
|
321.33 |
|
|
|
Price Indices (using AM) |
|
97.26 |
|
95.62 |
|
107.11 |
|
|