Question

Calculate weighted average of price relative index from the following data:

$\begin{array}{cccc}\text{Itmes}& \text{Weight in}\%& \text{Base year price (Rs)}& \text{Current Year Price (Rs)}\\ A& 40& 2& 4\\ B& 30& 5& 6\\ C& 20& 4& 5\\ D& 10& 2& 3\end{array}$

Answer 1

$\begin{array}{cccccc}\text{Items}& W& p_0& p_1& R=\frac{p_1}{p_0}\times 100& RW\\ A& 40& 2& 4& \frac{4}{2}\times 100=200& 8000\\ B& 30& 5& 6& \frac{6}{5}\times 100=120& 3600\\ C& 20& 4& 5& \frac{5}{4}\times 100=125& 2500\\ D& 10& 2& 3& \frac{3}{2}\times 100=150& 1500\\ & \sum W=100& & & & \sum RW=15600\end{array}$

$P_{01}=\frac{\sum RW}{\sum W}=\frac{15600}{100}=156$