Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

A factory used three raw materials A, B and C in its manufacturing process. The prices are as follows using 2010 as the base year

Commodities Price in 2010 Price in 2020
A 5 6
B 65 57
C 30 42

a simple aggregate price index for year 2020 is

Options:

100

104

105

95

Correct Answer:

105

Explanation:

The correct answer is Option (3) → 105

The simple aggregate price index is,

$P=\frac{∑P_n}{∑P_0}×100$

$=\frac{6+57+42}{5+65+30}×100=\frac{105}{100}×100$

$=105$