Calculate the index number for the year 2009 with 2000 as base from the following data using weighted average of price relatives.
| Commodity | Weights | Price (in ₹) |
|
| 2000 | 2009 | ||
| A | 22 | 2.50 | 6.20 |
| B | 48 | 3.30 | 4.40 |
| C | 17 | 6.25 | 12.75 |
| D | 13 | 0.65 | 0.90 |
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : 171.24
| Commodity |
Weights w |
Base price (₹) $p_0$ |
Current price $(₹) $p_1$ |
Price relative $I=\frac{p_1}{p_0}×100$ |
$Iw$ |
| A | 22 | 2.50 | 6.20 | 248 | 5456 |
| B | 48 | 3.30 | 4.40 | 133.33 | 6399.84 |
| C | 17 | 6.25 | 12.75 | 204 | 5468 |
| D | 13 | 0.65 | 0.90 | 138.46 | 1799.98 |
| $∑=100$ | $∑Iw=17123.82$ |
∴Index No. $=\frac{∑Iw}{∑w}=\frac{17123.82}{100}= 171.24$