|
Q. 2. Calculate the cost of living index number
for the year 1992 taking 1989 as the base year from
the following data:
| Item |
Price per kg (in
Rs.) |
| In 1989 (P0) |
In 1992 (P1) |
| A
|
8 |
10 |
| B
|
12 |
15 |
| C
|
10 |
25 |
| D
|
70 |
100 |
| E
|
5 |
6.5 |
Solution. å P0
= 105, å P1
= 156.5
Cost of living index number = (156.5/105 ) X 100
or Cost of living index number = 149.04
Weighted Aggregate method
Cost of living index number = (å
P1q0/å
P0q0) X 100
Where:
P1 = Price of current year
P0 = Price of base year
q0 = Quantity of base year
Q. 3. Calculate the cost of living index number
for the year 1992 taking 1989 as the base year from
the following data:
| Item |
Qty (Kg)
|
Price per kg (in
Rs.) |
| In 1989 |
In 1992 |
| A
|
30 |
8 |
10 |
| B
|
20 |
12 |
15 |
| C
|
10 |
10 |
25 |
| D
|
2 |
70 |
100 |
| E
|
30 |
5 |
6.5 |
Solution.
| Item
|
Qty (Kg) |
Price per kg (
in Rs) |
p0 X q0 |
p1
X q0 |
| q0
|
In
1989
(p0) |
In
1992
(p1) |
| A |
30 |
8 |
10 |
240 |
300 |
| B |
20 |
12 |
15 |
240 |
300 |
| C |
10 |
10 |
25 |
100 |
250 |
| D |
2 |
70 |
100 |
140 |
200 |
| E |
30 |
5 |
6.5 |
150 |
195 |
| Total
|
|
|
|
å
P0q0 = 870 |
å
P1q0 = 1245 |
Cost of living index number = (1245/870) X 100
or Cost of living index number = 143.10
Method of Weighted Relatives
Cost of living index number = å
PW/å W
Where:
P = Price Relative
W = Value Weights, i.e. p0 X q0
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