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 |
Answer & explanation
Correct answer: option 1
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
$p_{o1}=\frac{∑p_1}{∑p_o}×100=\frac{104}{100}×100= 104$