PRC-2 · Chapter 9 · Question 35 of 60
If the sum of prices for three commodities in the base year was Rs. 50, and the sum of their prices in the current year is Rs. 75, what is the Simple Aggregate Price Index?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 150
Explanation
The simple aggregate method merely sums the current prices and divides by the sum of the base prices, multiplied by 100. Here, (75 / 50) * 100 = 150.
More Indices MCQs
- Q37When formulating a Paasche *Quantity* Index (rather than a price index), what data is utilized as the mathematical weighting factor?
- Q38Conversely, what does the Laspeyres *Quantity* Index exclusively use as its weighting factor?
- Q39Which of the following index calculation methods relies heavily on the use of sequential 'link relatives'?
- Q40What is a 'Value Index' designed to mathematically measure?
- Q41When selecting a 'base year' for a price index, statisticians generally aim to pick a year that is: