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Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

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
Options:

142.50

151.19

158.45

162.10

Correct Answer:

151.19

Explanation:

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

$\frac{40}{35} \times 100 = 114.29$

$\text{Price index for 2015 } = P_{01} = \frac{\sum P_R}{N}$

$= \frac{150.00 + 166.67 + 200.00 + 125.00 + 114.29}{5} = \frac{755.96}{5} = 151.19$

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