Construct Price Index Number from the given data.CommodityABCDEPrice 2 – InterviewSolution

InterviewSolution

1.

Construct Price Index Number from the given data.CommodityABCDEPrice 2008 Rs6124108Price 2010 Rs10261212

Answer»

Commodity	Price in 2008 (p₀) (Rs)	Price in 2010 (p₁) (Rs)
A	6	10
B	12	2
C	4	6
D	10	12
E	8	12
Total	Σp₀ = 40	Σp₁ = 42

Price Index P₀₁ = x 100

\(\cfrac{42}{40} \times 100\)

= 105

Hence, P₀₁ = 105

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