Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

The price of five different commodities for year 2018 and 2019 are as follows:

Commodities Price is 2018 (in ₹) Price is 2019 (in ₹)
A 4 8
B 3 9
C 2 6
D 6 9
E 2 4

The price index number for the tear 2019 with 2018 as the base year, using sample average of price relatives is :

Options:

230

203

233

320

Correct Answer:

230

Explanation:

The correct answer is Option (1) → 230

To find the price index,

Price index = $\frac{1}{n}∑\left(\frac{Price\,in\,2019}{Price\,in\,2018}×100\right)$

∴ Price Relative for A = $\frac{8}{4}×100=200$

Price Relative for B = $\frac{9}{3}×100=500$

Price Relative for C = $\frac{6}{2}×100=300$

Price Relative for D = $\frac{9}{6}×100=150$

Price Relative for E = $\frac{4}{2}×100=200$

∴ Sample average = $\frac{1}{5}(200+300+500+150+200)$

$=\frac{1150}{5}=230$