Question

The group indices of prices of commodities for second week of Sept. 2017 and the group weights are given below. Compute the index number by family budget method.

Group	Weights	Index
Food Article	31	473.6
Manufactures	30	390.2
Industrial Raw Material	18	510.2
Semi-Manufactures	17	403.3
Miscellaneous	4	624.4

Answer 1

Group	Weights (w)	Index (x)	wx
Food Article Manufactures Industrial Raw Material Semi-Manufactures Miscellaneous	31 30 18 17 4	473.6 390.2 510.2 403.3 624.4	14681.6 11706 9183.6 6856.1 2497.6
	∑w = 100		∑wx = 44924.9

$\mathrm{WPI}=\frac{\Sigma wx}{\Sigma w}=\frac{44924.9}{100}=449.249$
Thus, the index of wholesale prices is 449.29.