Prof.

SudarsanAdak 1
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Unit-4 : Index Number

1.Find by simple aggregative method the price index number
from the following data.

Commodity A B C D E
Base Price 39 48 23 29 31
Current 58 69 37 44 47
Price
2.Find by the weighted aggregative method, the index number
from the following data.

Commodity Base Price Current Price W

Rice 32 50 8
Wheat 25 25 6
Oil 90 100 7
Fish 120 140 3
Potato 35 40 5
3. Find by the arithmetic mean method,the index number from
the following data.i) V.U.2009,12

Commodity Rice Wheat Fish Potato Coal

Base Price 30 22 54 20 15
Current 35 25 64 25 18
Price
ii)V.U.2007

Commodity Rice Wheat Fish Potato Oil

Base Price 30 25 130 35 70
Current 52 30 150 49 105
Price
Weight 8 6 3 5 7
iii)Find by the weighted aggregative method, the index number
from the following data.
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Com. Weight Base Price Current Price

A 14 90 120
B 20 10 17
C 35 40 60
D 15 50 95
iv)Calculate the index number for 2021 with 2022 as based by
using i)the simple average ii)weighted average of price relatives

Com. Weight 2021 2022

A 5 2.00 4.5
B 7 2.50 3.2
C 6 3.00 4.5
D 2 1.00 1.8
v)Calculate price index numbers from the following data using
i)weighted aggregative formula ii)weighted arithmetic mean of
price relatives formula

Com. Weight Base Price Current Price

A 14 80 110
B 20 10 15
C 35 40 56
D 15 50 95
E 16 12 18
4)Calculate the Price Index numbers by i) Laspeyres’ ii) Paasche’s
iii) Bowley’s iv)Fisher ideal Formula v) Edgeworth-Marshall’s
Formula

Commodity Base year(2021) Current year(2022)

Price Quantity Price Quantity
A 20 8 40 6
B 50 10 60 5
C 40 15 50 10
D 20 20 20 15

V.U.2010,17
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5)Calculate the Price Index numbers by Laspeyres’ Formula from

the following information.

Commodity Base year(2021) Current year(2022)

Price Quantity Price Quantity
Rice 2 8 4 6
Pulses 5 10 6 5
Fish 4 14 5 10
Oil 2 19 2 13

6)Calculate the Price Index numbers by i) Laspeyres’ ii) Paasche’s

iii) Formula Formula from the following information.
V.U.2011

Commodity Price Quantity

2021 2022 2021 2022
Rice 9.3 4.5 100 90
Wheat 6.4 3.7 11 10
Pulses 5.1 2.7 5 3

7)Edgeworth-Marshall’s index and Fisher’s ideal index are very

close to each other. Verify this statement from the following data.

Commodity Base year(2021) Current year(2022)

Price Quantity Price Quantity
A 10 12 12 15
B 7 15 5 20
C 5 24 9 20
D 16 5 14 5

8)Calculate the Quantity Index numbers by Fisher ideal Formula

V.U.13

Com.I Com.II Com.III

Year Price Quantity Price Quantity Price Quantity
2021 5 10 8 6 6 3
2022 4 12 7 7 5 4
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9)Calculate the Quantity Index numbers by i) Laspeyres’ ii)

Paasche’s iii) Bowley’s iv)Fisher ideal Formula v) Edgeworth-
Marsall’s Formula

Commodity Base year(2021) Current year(2022)

Price Quantity Price Quantity
A 20 8 40 6
B 50 10 60 5
C 40 15 50 10
D 20 20 20 15

10)Show that Fisher’s ideal index number satisfies both the time
reversal and the factor reversal tests and verify this from the
following data.V.U.2017

Commodity Base year(2021) Current year(2022)

Price Quantity Price Quantity
A 6 50 10 56
B 2 100 2 120
C 4 60 6 60
D 10 30 12 24
E 8 40 12 36

11) Calculate the quantity index number using Fisher’s formula

for the following data and show that it satisfies the time reversal
test.

Commodity Base year(2021) Current year(2022)

Price Quantity Price Quantity
A 6 70 8 120
B 8 90 10 100
C 12 140 16 280

12)Using the following data verify that Paasche’s formula for

index does not satisfy factor reversal test
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Commodity Base year(2021) Current year(2022)

Price Quantity Price Quantity
X 4 10 6 15
Y 6 15 4 20
Z 8 5 10 4
13)Find the index numbers for the years 2019,2020,2021 by the
chain base method, with base year 2018,from the following table
Year 2018 2019 2020 2021
Chain Index 100 110 95.5 109.5
14) Given the following information construct chain index
numbers(Base2017=100)for the year 2018-2022

Year 2018 2019 2020 2021 2022

Chain 103 98 105 112 108
Index
15)From the table of group index numbers and group weights
given below, Calculate the cost of living index. i)

Class Group Index Weight

Food 428 45
Cloth 240 15
Fuel &Light 200 8
House Rent 125 20
Others 170 12
ii)
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Class Group Index Weight

Food 620 30
Cloth 255 15
Fuel &Light 575 20
House Rent 325 25
Others 280 10
16)The cost of living index number for a certain consumer group
goes up from 110 in 2021 to 220 in 2022 and the salary of a
worker belonging to this group is also raised from Rs. 325 in 2021
to Rs. 500 in 2022. Does the worker really gain and if so,by how
much in real forms?
V.U.2015

17) In 2021 the price of a commodity increased by 50% over that

in 2022 while the production of the quantity decreased by 30%.
By what percentage did the total rupee value of the commodity in
2022 increase or decrease with respect to the 2022 value.
V.U.2018

Answer Sheet
1.)1502.)119.03 3)i)118.76 ,ii)144.79 iii)153.6 iv)170.75
,164.05 v)150.55,150.75 4)124.7,125.2, 124.95, 124.8, 124.9
5)125 6) 49.1471, 49.1215, 49.1343 7)115.65&115.76
8)120.65 9.)i. 64.45 ii)64.75 iii)64.59 iv)64.58 v)64.61
10.)139.75 11.)173.513.)110,105,115 14.)103, 100.94, 106,
118.72, 128.2215.)290, 448.5 16.)no,150 17.)5% increase