Find the consumer price index number for 2011 on the base of 2010 from the following data. Using the method of weighted relatives.
| Item | Quantity | Price in 2010 (₹) | Price in 2011 (₹) |
| A | 20 units | 200 | 320 |
| B | 14 units | 400 | 420 |
| C | 15 units | 100 | 120 |
| D | 18 units | 40 | 60 |
| E | 10 units | 20 | 28 |
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : 137.27
Price in 2010 → Base Price
Price in 2011 → Current Price
| Price relative → $I=\frac{p_1}{p_0}×100$ | Iw |
|
160 105 120 150 140
|
3200 1470 1800 2700 1400 $∑Iw= 10570$ |
∴ Index Number $=\frac{∑Iw}{∑w}=\frac{10570}{77}= 137.27$