Question

From the data given below construct the consumer price index number:

Commodity	Price Relatives	Weights
Food	250	45
Rent	150	15
Clothing	320	20
Fuel and Lighting	190	5
Miscellaneous	300	15

Answer 1

Commodity	Price relatives (R)	Weights (W)	WR
Food Rent Clothing Fuel Miscellaneous	250 150 320 190 300	45 15 20 5 15	11250 2250 6400 950 4500
		∑W = 100	∑WR = 25350

$$\begin{gathered} \mathrm{Index}\mathrm{number}=\frac{\Sigma WR}{\Sigma W} \\ =\frac{25350}{100} \\ =253.50 \end{gathered}$$
Thus, the consumer price index number is 253.5.