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CMA Foundation · Fundamentals of Business Mathematics and Statistics · Index Numbers and Time Series

Prices of three items in the base year were Rs 10, Rs 20 and Rs 30, and in the current year Rs 15, Rs 30 and Rs 36. The simple aggregative price index (base = 100) is:

The simple aggregative price index is 135. The current prices total Rs 81 and the base prices total Rs 60, so the index equals 81 divided by 60 multiplied by 100, which is 135.

  1. A150
  2. B135Correct
  3. C125
  4. D135.5

Explanation

Sum of base prices = 10+20+30 = 60. Sum of current prices = 15+30+36 = 81. Index = 81/60 x 100 = 135. The value 125 is not obtained by averaging; 150 uses only the first two items (45/30).

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