Question

Calculate the index number for 2016 with 2012 as base using the weighted average of price relative method for the following data:

Commodity	Quantity (in units) 2012	Price (in ₹)2012	Price (in ₹)2016
A	2	12	24
B	8	8	12
C	4	15	27
D	5	6	18
E	1	10	12

Answer 1

Commodity	2012 q0	2012 p0	2016 p1	p0q0 (W)	Price Relative (R)= $\frac{{\mathbf{p}}_{\mathbf{1}}}{{\mathbf{p}}_{\mathbf{0}}}\mathbf{\times }\mathbf{100}$	RW
A	2	12	24	24	200	4800
B	8	8	12	64	150	9600
C	4	15	27	60	180	10800
D	5	6	18	30	300	9000
E	1	10	12	10	120	1200
				ΣW = 188		ΣRW = 35400

Weighted Average of Price Relatives

$P_{01}=\frac{\Sigma RW}{\Sigma W}=\frac{35400}{188}=188.297$