Question

Construct a composite index number as a weighted mean from the following data:

Index Number	122	145	101	98	137	116
Weight	7	2	4	1	6	5

• A. 120
• B. 122
• C. 130
• D. 132

Answer 1

The correct option is B 122

$Indexnumber$ $I$	$Weight$ $w$	$I.w$
$122$	$7$	$854$
$145$	$2$	$290$
$101$	$4$	$404$
$98$	$1$	$98$
$137$	$6$	$822$
$116$	$5$	$580$
$Total$	$\sum w=25$	$\sum Iw=3048$

$\Rightarrow$ Composite index number = $\frac{\sum Iw}{\sum w}=\frac{3048}{25}=121.92\approx 122$.