Question

Calculate the cost of living index number from the following data :

Answer 1

$\begin{array}{cccccc}\text{Items}& \text{W}& P_0& P_1& R=\frac{P_1}{P_0}\times 100& \text{RW}\\ \text{Food}& 4& 30& 47& \frac{47}{30}\times 100=156.6& 626.4\\ \text{Fuel}& 1& 8& 12& \frac{12}{8}\times 100=150.0& 150.0\\ \text{Clothes}& 3& 14& 18& \frac{18}{4}\times 100=128.5& 385.5\\ \text{House Rent}& 2& 22& 15& \frac{15}{22}\times 100=68.1& 136.2\\ \text{Miscellaneous}& 1& 25& 30& \frac{30}{25}\times 100=120& 120\\ & \sum W=11& & & \sum (\frac{P_1}{P_0}\times 100)=623.2& \sum RW=1418.1\end{array}$

Weighted Average of Price Relative Method:

$P_{01}=\frac{\sum RW}{\sum W}=\frac{1418.1}{11}=128.9$