Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

A small industrial concern used three raw material A, B and C in its  manufacturing process. The prices of the material was as shown below.

 Commodities Price in ₹ in the tear 2005
Price in ₹ in the year 2015
A 4 5
B 60 57
C 36 42
Options:

104

102

106

108

Correct Answer:

104

Explanation:

The correct answer is option (1) : 104

Commodities Base price (₹)$p_o$ Current price (₹) $p_1$

A

B

C

4

60

36

5

57

42

  $∑p_0=100$ $∑p_1=104$

Hence, required index no. by simple aggregate method

$p_{o1}=\frac{∑p_1}{∑p_o}×100=\frac{104}{100}×100= 104$