Apply simple average of relatives method to calculate index number for 2015 from the following data with base 2010.
|
Commodities: |
A |
B |
C |
D |
E |
|
Prices in 2015 |
15 |
20 |
10 |
25 |
40 |
|
Prices in 2010 |
10 |
12 |
05 |
20 |
35 |
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 151.19
|
Commodities |
Prices in 2010 ($P_0$) |
Prices in 2015 ($P_1$) |
Price Relatives $(P_R)=\frac{P_1}{P_0}×100$ |
|
A |
10 |
15 |
$\frac{15}{10} \times 100 = 150.00$ |
|
B |
12 |
20 |
$\frac{20}{12} \times 100 = 166.67$ |
|
C |
05 |
10 |
$\frac{10}{5} \times 100 = 200.00$ |
|
D |
20 |
25 |
$\frac{25}{20} \times 100 = 125.00$ |
|
E |
35 |
40 |
$\frac{40}{35} \times 100 = 114.29$ |
$\text{Price index for 2015 } = P_{01} = \frac{\sum P_R}{N}$
$= \frac{150.00 + 166.67 + 200.00 + 125.00 + 114.29}{5} = \frac{755.96}{5} = 151.19$