Accessed on 2 Wheldom Business Statistics 3 Karmel cited in S P

# Accessed on 2 wheldom business statistics 3 karmel

• Notes
• 16

This preview shows page 9 - 13 out of 16 pages.

. Accessed on May 31, 2010. 2 Wheldom: Business Statistics . 3 Karmel: cited in S. P. Gupta and M.P. Gupta. Page 9 of 16
LS 05 STA 101 (SPRING 2015) I M SHAFIQUL KALAM (ISK) Assistant Professor, MNS, BRACU The following charts illustrates the various methods Index Number Un- weighted Weighted Simple Aggregative Simple average of price relatives Simple Aggregative Simple average of price relatives i. Un-weighted Index Numbers a. Simple Aggregative Method This is the simplest method of constructing index numbers. When this method is used to construct a price index, the total of current year prices for the various commodities in question is divided by the total of base year price and the quotient is multiplied by 100. Symbolically, 100 * 0 1 01 P P P Where 1 P Total of current year prices for various commodities, and 0 P Total of base year prices for various commodities This method of constructing the index is very simple and the steps required in computation are: a) Add the current year prices for various commodities, i.e., obtain 1 P . b) Add the base year prices for the same commodities, i.e., obtain 0 P . c)Divide 1Pby 0Pand multiply the quotient by 100. Illustration 1: From the following data construct an index number for 2008 taking 2007 as base: Commodity and UnitPrice (tk.) in 2007Price (tk.) in 2008Butter (kg.)110.000120.00Cheese (kg.)75.0080.00Milk (lt.)13.0013.00Bread (lb.)9.009.00Eggs (Doz.)18.0020.00Ghee (1 Can)850.00860.00 Page 10 of 16
LS 05 STA 101 (SPRING 2015) I M SHAFIQUL KALAM (ISK) Assistant Professor, MNS, BRACU Illustration 2: Page 11 of 16
LS 05 STA 101 (SPRING 2015)