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Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

The following are the prices of commodities in 2010 and 2015. Calculate a price index based on price relatives using arithmetic mean:

Year

A

B

C

D

E

F

2010

55

60

20

50

85

120

2015

65

70

30

75

90

130
Options:

124.84

119.50

132.10

149.06

Correct Answer:

124.84

Explanation:

The correct answer is Option (1) → 124.84

Commodity

2010 ($p_0$​)

2015 ($p_1$​)

$PR​=\frac{p_1}{p_0}​​×100$

A

55

65

$\frac{6500}{55} = 118.18$

B

60

70

$\frac{7000}{60} = 116.67$

C

20

30

$\frac{3000}{20} = 150.00$

D

50

75

$\frac{7500}{50} = 150.00$

E

85

90

$\frac{9000}{85} = 105.88$

F

120

130

$\frac{13000}{120} = 108.33$

 

 

 

$\sum P_R = 749.06$

Price Index $= P_{01} = \frac{\sum P_R}{N} = \frac{749.06}{6} = 124.84$

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