Question

Calculate weighted average of price relative index number of prices for 2016 on the basis of 2011 from the following data:

Comity	Quantity in 2011	Price (in ₹)2011	Price (in ₹) 2016
A	20	20	35
B	12	15	18
C	8	10	11
D	4	5	5
E	6	4	5

Answer 1

Commodity	Quantity in 2011 (q0) Weights	Price in 2011 (p0)	Price in 2016 (p1)	p0q0 (W)	R=$\frac{{\mathbf{p}}_{\mathbf{1}}}{{\mathbf{p}}_{\mathbf{0}}}\mathbf{\times }\mathbf{100}$	RW
A	20	20	35	400	175	70000
B	12	15	18	180	120	21600
C	8	10	11	80	110	8800
D	4	5	5	20	100	2000
E	6	4	5	24	125	3000
				ΣW = 704		ΣRW = 105400

Weighted Average of Price Relatives

$$\begin{gathered} p_{01}=\frac{\mathrm{\Sigma RW}}{\mathrm{\Sigma W}}=\frac{105400}{704} \\ \Rightarrow p_{01}=149.715 \end{gathered}$$