Question

Construct Cost of Living Index Number for the year 2017 from the following statistics:

Commodity	2004 Price	2004 Quantity	2017 Price
A B C D E	25 36 12 6 28	16.0 7.0 3.5 2.5 4.0	35 48 16 10 28

Answer 1

	P0	q0	P1	P1q0	P0q0
A B C D E	25 36 12 6 28	16 7 3.5 2.5 4	35 48 16 10 28	560 336 56 25 112	400 252 42 15 112
				$\Sigma P_1{q}_0=821$	$\Sigma P_0{q}_0=1089$

Cost of Living Index

$$\begin{gathered} \mathrm{CPI}=\frac{\Sigma P_0{q}_0}{\Sigma P_1{q}_0}\times 100 \\ \mathrm{or},\mathrm{CPI}=\frac{1089}{821}\times 100=132.643 \end{gathered}$$