 # 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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