Question

Calculate Value Index number using a simple method of the following data:

Commodities		Beas Year	Current Year
	p0	q0	p1	q1
A	4	10	5	40
B	6	15	10	100
C	8	20	15	200

Answer 1

Steps : Σp₀ q₀ = Sum total of product of the p and q₀ of base year.

Σp₁ q₁ = Sum total of product of the p₁ and q₁ of current year.

Value Index Number V₀₁ = \(\cfrac{Σp_1q_1}{Σp_0q_0} \times 100\)

\(\cfrac{4,200}{290}\times 100\)

= 1,448

Hence, V₀₁ = 1,448