From the data given below, calculate price Index numbers by taking ($i$) 2005 as base year, ($ii$) 2014 as base year, ($iii$) 2009 to 2011 as base.
|
Year: |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
|
Price: |
5 |
7 |
10 |
12 |
11 |
10 |
9 |
15 |
18 |
20 |
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (i) 400, (ii) 100, (iii) 200
$\text{Arithmetic Mean of prices from 2009 to 2011} = \frac{11+10+9}{3} = 10 \text{}$
|
Year |
Price |
Price Indices (2005 as base) |
Price Indices (2014 as base) |
Price Indices base from 2009 to 2011 |
|
2005 |
5 |
100 |
$\frac{500}{20} = 25$ |
$\frac{500}{10} = 50$ |
|
2006 |
7 |
$\frac{700}{5} = 140$ |
$\frac{700}{20} = 35$ |
$\frac{700}{10} = 70$ |
|
2007 |
10 |
$\frac{1000}{5} = 200$ |
$\frac{1000}{20} = 50$ |
$\frac{1000}{10} = 100$ |
|
2008 |
12 |
$\frac{1200}{5} = 240$ |
$\frac{1200}{20} = 60$ |
$\frac{1200}{10} = 120$ |
|
2009 |
11 |
$\frac{1100}{5} = 220$ |
$\frac{1100}{20} = 55$ |
$\frac{1100}{10} = 110$ |
|
2010 |
10 |
$\frac{1000}{5} = 200$ |
$\frac{1000}{20} = 50$ |
$\frac{1000}{10} = 100$ |
|
2011 |
9 |
$\frac{900}{5} = 180$ |
$\frac{900}{20} = 45$ |
$\frac{900}{10} = 90$ |
|
2012 |
15 |
$\frac{1500}{5} = 300$ |
$\frac{1500}{20} = 75$ |
$\frac{1500}{10} = 150$ |
|
2013 |
18 |
$\frac{1800}{5} = 360$ |
$\frac{1800}{20} = 90$ |
$\frac{1800}{10} = 180$ |
|
2014 |
20 |
$\frac{2000}{5} = 400$ |
100 |
$\frac{2000}{10} = 200$ |