Calculate the price index using weighted average of relatives method for the food consumption in a student hostel in a month. Use data of year 1997 as base year for calculations.
|
COMMODITY |
WEIGHT |
PRICE PER UNIT |
|
|
1997 |
2001 |
||
|
Rice |
14 quintals |
90 |
120 |
|
Wheat |
20 kg |
30 |
46 |
|
Pulses |
35 kg |
22 |
34 |
|
Milk |
15 litre |
50 |
90 |
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 152.07
Weighted price relative for year 2001 on the base period 1997 = $I_{2001} = \frac{\sum \frac{p_n}{p_0}(p_0 Q_0)}{\sum p_0 Q_0} \times 100$
$= \frac{5140}{3380} \times 100$
$= 152.07$