Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

Consider the following table:

 Commodity 

 Quantity 

 Price Year 2002 

 Price Year 2006 

P

30

200

280

Q

20

100

200

R

20

150

120

S

10

50

100

The weighted aggregative price index number for year 2006 with year 2002 as base year using Laspeyre's index number is:

Options:

$\frac{3150}{24}$

134

136

$\frac{3160}{23}$

Correct Answer:

136

Explanation:

The correct answer is Option (3) → 136

$\text{Laspeyres index} = \frac{\sum p_1 q_0}{\sum p_0 q_0} \times 100$

$\sum p_1 q_0 = 280\cdot30 + 200\cdot20 + 120\cdot20 + 100\cdot10$

$= 8400 + 4000 + 2400 + 1000 = 15800$

$\sum p_0 q_0 = 200\cdot30 + 100\cdot20 + 150\cdot20 + 50\cdot10$

$= 6000 + 2000 + 3000 + 500 = 11500$

$P_{01} = \frac{15800}{11500} \times 100$

$= 137.39$

The Laspeyres index number is $137.39$.