Question

Using Simple Aggregate Method and Price Relatives Method, find out index values for the year 2017 from the following data:

Itmes	A	B	C	D	E
2004 Price (₹)	15	33	38	25	50
2017 Price (₹)	30	35	57	35	63

Answer 1

Simple Aggregate Method

Items	2004 Price (P0)	2014 Price (P1)
A B C D E	15 33 38 25 50	30 35 57 35 63
	ΣP0 = 161	ΣP1 = 220

$$\begin{gathered} P_{01}=\frac{{\mathrm{\Sigma P}}_1}{{\mathrm{\Sigma P}}_0}\times 100 \\ \mathrm{or},P_{01}=\frac{220}{161}\times 100 \\ \Rightarrow P_{01}=136.64 \end{gathered}$$


Price Relative Method

Items	2004 Price (P0)	2014 Price (P1)	Price relative =$\frac{P_1}{P_0}\times 100$
A	15	30	$\frac{30}{15}\times 100=200$
B	33	35	$\frac{35}{33}\times 100=106.06$
C	38	57	$\frac{57}{38}\times 100=150$
D	25	35	$\frac{35}{25}\times 100=140$
E	50	63	$\frac{63}{50}\times 100=126$
N = 5			$\mathrm{\Sigma }\left(\frac{{\mathrm{P}}_1}{{\mathrm{P}}_0}\times 100\right)=722.06$

$$\begin{gathered} P_{01}=\frac{\mathrm{\Sigma }\left({\displaystyle \frac{P_1}{P_0}}\times 100\right)}{N} \\ \mathrm{or},P_{01}=\frac{722.06}{5} \\ \Rightarrow P_{01}=144.412 \end{gathered}$$