T.R. Jain and V.K. Ohri Solutions Class 11 Statistics 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

This chapter covers the following concepts:

  •       Concept and definition of index numbers
  •       Characteristics of index numbers
  •       Construction 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:

Price index based on price relative method is calculated as follows:

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

 

These are considered to be the best solutions for Statistics for Economics Class 11 T.R. Jain and V.K. Ohri  Chapter 13 – Index Numbers. Stay tuned to BYJU’S to learn more and score well in the upcoming board examinations.

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