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Worked Examples · Example 3
Q.

From the following data for four commodities, calculate the price index number by the Simple Aggregative Method.

CommodityBase Year Price (p0)Current Year Price (p1)
A1015
B810
C56
D1214
Maharashtra MsbshseTextbookSubjectiveImportance★★★★★
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✓ Free question

Step 1 — Sum the prices.

∑p0=10+8+5+12=35\sum p_0 = 10+8+5+12 = 35

∑p1=15+10+6+14=45\sum p_1 = 15+10+6+14 = 45

Step 2 — Apply the formula.

P01=∑p1∑p0×100=4535×100=128.57P_{01} = \frac{\sum p_1}{\sum p_0}\times100 = \frac{45}{35}\times100 = 128.57

✓Final answer

P01 = 128.57 — prices have risen, on average, by about 28.57% over the base year.

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