The formula for a simple aggregative price index is:

P_{01} = \frac{Σ p_{1}}{Σ p_{0}} \times 100

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P_{01} = \frac{1}{N} \sum (\frac{p_{1}}{p_{0}} \times 100)

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Either A or B

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Solution

The correct option is B $P_{01} = \frac{Σ p_{1}}{Σ p_{0}} \times 100$
The formula for Simple Aggregative Price Index is given by:
$P_{01} = \frac{Σ p_{1}}{Σ p_{0}} \times 100$

Where:
$Σ p_{0}$ = sum of total prices in base year.
$\sum p_{1}$ = sum of total prices in current year.
$P_{01}$ = index number of the current year

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$P_{01} = \sum (\frac{P_{1} Q_{0}}{P_{0} Q_{0}}) \times 100$ is the formula of:

(I) A rising price index implies a growing level of economic activity.

(II) Simple index number can be constructed only by the simple aggregative method.

Calculate the simple aggregative price index on the basis of the following data:

$\begin{matrix} Commodity & Price (Rs) in 2006 & Price (Rs) in 2008 Rice & 120 & 180 Wheat & 80 & 100 Oil & 300 & 400 Pulses & 130 & 180 Sugar & 150 & 200 \end{matrix}$

Q. One mole of an ideal gas undergoes a process

p = \frac{p_{0}}{1 + (V / V_{0})^{2}}

where p₀ and V₀ are constants. Find the temperature of the gas when V = V₀.

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The formula for a simple aggregative price index is:

The correct option is B P01=Σp1Σp0×100 The formula for Simple Aggregative Price Index is given by: P01=Σp1Σp0×100 Where: Σp0 = sum of total prices in base year. ∑p1 = sum of total prices in current year.P01 = index number of the current year