Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

The following table shows the prices per unit in 2010 and 2014 with weights of commodities A, B, C, D.

Commodity Weights Price per unit in 2010 Price per unit in 2014
A 20 25 30
B 25 20 30
C 15 50 70
D 40 5 10

 

Options:

162.5

164.5

170.5

172.5

Correct Answer:

162.5

Explanation:

The correct answer is option (1) : 162.5

Price relative

$I=\frac{p_1}{p_0}×100$

$Iw$

120

150

140

200

 

2400

3750

2100

8000

$∑w= 16250$

 

∴ Index number $=\frac{∑Iw}{∑w}=\frac{16250}{100}=162.5$