Question

Calculate the cost of living index(approximately) from the following data:

Group	Weights	Group Index No.
Food	47	247
Fuel and Lightning	7	293
Clothing	8	289
House Rent	13	100
Miscellaneous	14	236

• A. $231.2$
• B. $265.4$
• C. $245.7$
• D. $123.78$

Answer 1

The correct option is A $231.2$

Cost of living index $=\frac{{\sum }_{i=1}^5{\left(\text{weight}\right)}_i\times {\left(\text{Index no.}\right)}_i}{{\sum }_{i=1}^5{\left(\text{weight}\right)}_i}$
$=\frac{47\times 247+7\times 293+8\times 289+13\times 100+14\times 236}{47+7+8+13+14}$
$=\frac{11609+2051+2312+1300+3304}{89}$
$=\frac{20756}{89}=231.19$
$\simeq 231.2$