Question

Construct index numbers by (aggregative method) based on the price of 2011 from the following figures:

Items	A	B	C	D	E	F
Prices (2011)	200	60	350	100	60	80
Prices (2016)	240	90	600	110	62	90

Answer 1

Items	Price in 2011 (P0)	Price in 2016 (P1)
A B C D E F	200 60 350 100 60 80	240 90 600 110 62 90
	ΣP0 = 850	ΣP1 = 1192

$$\begin{gathered} P_{01}=\frac{\Sigma P1}{\Sigma P_0}\times 100 \\ \mathrm{or},P_{01}=\frac{1192}{850}\times 100 \\ \Rightarrow P_{01}=140.235 \end{gathered}$$