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Using the simple aggregate method, calculate price index number from the following data:

Commodity A B C D E
1993 prices (in Rs) 50 40 10 5 2
1995 prices (in Rs) 80 60 20 10 6

(a) 164.49
(b) 154.75
(c) 162.69
(d) 152.75

Aniket Singh , 5 Months ago
Grade
anser 1 Answers
Askiitians Tutor Team

Last Activity: 5 Months ago

To calculate the price index number using the simple aggregate method, you can use the following formula:

Price Index = (Total Cost of Current Year / Total Cost of Base Year) * 100

In this case, the base year is 1993, and the current year is 1995.

Calculate the total cost for each year:

1993 Total Cost = (50 + 40 + 10 + 5 + 2) = 107 Rs
1995 Total Cost = (80 + 60 + 20 + 10 + 6) = 176 Rs
Now, calculate the price index:
Price Index = (176 / 107) * 100 ≈ 164.49

So, the price index number using the simple aggregate method is approximately 164.49.

The correct answer is (a) 164.49.

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