Calculate price index number by weighted average of price relative method.

Commodity Price Base Year
(in ₹) Price current year
( in ₹) Quantity Base year
(in Kg)

A 6.0 8.0 40

B 3.0 3.2 80

C 2.0 3.0 2

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Solution

Commodity
Price in Base Year (p₀)
Price in Quantity Year
(p₁)
Quantity in Base Year
(q₀) $R = (\frac{p_{1}}{p_{0}} \times 100)$ V
(p₀q₀) RV

A
B
C 6
3
2 8
3.2
3 40
80
20 133.33
106.67
150 240
240
40 31999.2
25600.8
6000

∑V = 520 ∑RV = 63600

Weighted Average of Price Relative Method

$Index number = \frac{Σ R V}{Σ V} = \frac{63600}{520} = 122.30$
Thus, price index number is 122.30.

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Commodity	Price Base Year (in ₹)	Price current year ( in ₹)	Quantity Base year (in Kg)
A	6.0	8.0	40
B	3.0	3.2	80
C	2.0	3.0	2

Commodity	Price in Base Year (p₀)	Price in Quantity Year (p₁)	Quantity in Base Year (q₀)	$R = (\frac{p_{1}}{p_{0}} \times 100)$	V (p₀q₀)	RV
A B C	6 3 2	8 3.2 3	40 80 20	133.33 106.67 150	240 240 40	31999.2 25600.8 6000
					∑V = 520	∑RV = 63600

Calculate price index number by weighted average of price relative method. Commodity Price Base Year (in ₹) Price current year ( in ₹) Quantity Base year (in Kg) A 6.0 8.0 40 B 3.0 3.2 80 C 2.0 3.0 2

Calculate price index number by weighted average of price relative method.

Commodity Price Base Year
(in ₹) Price current year
( in ₹) Quantity Base year
(in Kg)

A 6.0 8.0 40

B 3.0 3.2 80

C 2.0 3.0 2