Calculate the index number using the simple average of price relative method for the data below, taking 2010 as the base year:ItemPrice in 2010Price i - Mathematics MCQ Mathematics Mock Test - 1 2026 | ExamTest.live

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Calculate the index number using the simple average of price relative method for the data below, taking 2010 as the base year:ItemPrice in 2010Price in 2015A100140B80120C160200D220385E112112

Solution & Step-by-step Explanation

Formula for Simple Average of Price Relative: P_{01} = \frac{\sum ( \frac{P _{1}}{P _{0}} \times 100 )}{N} Calculating price relatives (\frac{P _{1}}{P _{0}} \times 100) for each item:A: \frac{140}{100} \times 100 = 140 B: \frac{120}{80} \times 100 = 150 C: \frac{200}{160} \times 100 = 125 D: \frac{385}{220} \times 100 = 175 E: \frac{112}{112} \times 100 = 100 Sum of relatives = 140 + 150 + 125 + 175 + 100 = 690 Number of items N = 5 $ P_{01} = \frac{690}{5} = 138 $

Try it yourself before checking the explanation above.

Calculate the index number using the simple average of price relative method for the data below, taking 2010 as the base year:ItemPrice in 2010Price in 2015A100140B80120C160200D220385E112112

126

144

138

136

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