T.R. Jain and V.K. Ohri Solutions for Class 11 Statistics for Economics Chapter 13 - Index Numbers

T.R. Jain and V.K. Ohri Solutions for Class 11 Statistics for Economics Chapter 13 – Index Numbers is regarded as an important concept to be studied thoroughly by the students. Here, we have provided T.R. Jain and V.K. Ohri Solutions for Class 11.

Board

CBSE

Class

Class 11

Subject

Statistics for Economics

Chapter

Chapter 13

Chapter Name

Index Numbers

Number of questions solved

02

Category

T.R. Jain and V.K. Ohri

Chapter 13 – Index Numbers covers the below-mentioned concepts:

  • Concept and definition of Index Numbers
  • Characteristics of Index Numbers
  • Constructed of weighted Index Numbers
  • Fisher’s Index Numbers as an ideal method
  • Consumer price index or cost of living Index Number

T.R. Jain and V.K. Ohri Solutions for Class 11 Statistics for Economics Chapter 13 – Index Numbers

Question 1

What is Index Number?

Answer: According to Croxton and Cowden, “Index numbers are devices for measuring the difference in the magnitude of a group of related variables.”

Question 2

The following are the prices of commodities in 2004 and 2018. Construct a price index based on price relatives taking 2004 as the base year.

Commodity

A

B

C

D

E

Price in 2004

50

40

80

110

20

Price in 2018

40

60

90

120

20

Solution:

Construction of a price index-

Simple average of price relatives

Commodity

Price in 2004 (P0)

Price in 2018 (P1)

Price Relatives

\(\left(\frac{P1}{P0}\times100\right)\)

A

50

70

\(\frac{70}{50}\times 100=140\)

B

40

60

\(\frac{60}{40}\times 100=150\)

C

80

90

\(\frac{90}{80}\times 100=112.5\)

D

110

120

\(\frac{120}{110}\times 100=109.1\)

E

20

20

\(\frac{20}{20}\times 100=100\)

N = 5

\(\sum\left(\frac{P1}{P0}\times100\right)=611.6\)
\(P_{01}=\frac{\sum\left(\frac{P_1}{P_0}\times100\right)}{N}\) \(=\frac{611.6}{5}=122.32\)

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