Question

Construct index number of industrial production from the following data: $\begin{array}{ccccc}\text{Industry}& \text{Unit}& \text{Base year}& \text{Current Year}& \text{Weight}\\ Electrical& \text{Mill, Nos.}& 5& 23& 20\\ \text{Mining}& \text{Th. Tonnes}& 552& 109& 17\\ \text{Manufacturing}& \text{Mill. Nos.}& 223& 999& 63\end{array}$

• A. 407.92
• B. 342.74
• C. 509.87
• D. 468.36

Answer 1

The correct option is A

407.92

$P_{01}=\frac{\sum WR}{\sum W}=\frac{\sum \left(\frac{Q1}{Q0}\right)\times 100}{\sum W}=\frac{20\times \left(\frac{23}{5}\right)\times 100+17\times \left(\frac{109}{55}\right)\times 100+63\times \left(\frac{999}{223}\right)\times 100}{100}=407.92$