Question

Construct a weighted index number of the following data using price relative method:

Item	A	B	C	D	E
Base Year (Quantity)	24	14	8	4	8
Base Year (Price)	2	4	6	10	5
Current Year (Price)	3	5	9	12	5

Answer 1

	P0	q0	P1	P0q0 ​(W)	$R=\frac{P_1}{P_0}\times 100$	RW
A	2	24	3	48	$\frac{3}{2}\times 100=150$	7200
B	4	14	5	56	$\frac{5}{4}\times 100=125$	7000
C	6	8	9	48	$\frac{9}{6}\times 100=150$	7200
D	10	4	12	40	$\frac{12}{10}\times 100=120$	4800
E	5	8	5	40	$\frac{5}{5}\times 100=100$	4000
				$\Sigma W=232$		$\Sigma RW=30,200$

Weighted index number
${\mathrm{P}}_{01}=\frac{\Sigma RW}{\Sigma W}\frac{30,200}{232}or,\mathrm{P}$₀₁ =130.17