Index NumbersMCQMTP June 22Question 3914 of 197
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The simple index number for the current year using simple aggregate method for the following dataCommodity | Base year Price (P0) | Current Year Price (P1)Wheat | 80 | 100Rice | 100 | 150Gram | 120 | 250Pulses | 200 | 300

Options

A200
B150
C240
D160
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Correct Answer

✅ Option d — 160

All Options:

  • A200
  • B150
  • C240
  • D160

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Detailed Solution & Explanation

We are given: - Wheat: P0=80,P1=100\displaystyle P_0 = 80, P_1 = 100 - Rice: P0=100,P1=150\displaystyle P_0 = 100, P_1 = 150 - Gram: P0=120,P1=250\displaystyle P_0 = 120, P_1 = 250 - Pulses: P0=200,P1=300\displaystyle P_0 = 200, P_1 = 300 Using the **Simple Aggregative Method**: 1. **Sum of Base Year Prices (∑P0\displaystyle \sum P_0)**: ∑P0=80+100+120+200=500\sum P_0 = 80 + 100 + 120 + 200 = 500 2. **Sum of Current Year Prices (∑P1\displaystyle \sum P_1)**: ∑P1=100+150+250+300=800\sum P_1 = 100 + 150 + 250 + 300 = 800 3. **Calculate Simple Aggregative Index**: P01=∑P1∑P0×100=800500×100=160%P_{01} = \frac{\sum P_1}{\sum P_0} \times 100 = \frac{800}{500} \times 100 = 160\% Hence, **Option D** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

Index Number

A statistical device for measuring changes in the magnitude of a group of related variables (like prices or production) over time.

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More Questions from Index Numbers

In price index, when a new commodity is required to be added, which of the following index is used?

Fisher's ideal formula for calculating index number satisfies the ________

Shifted Price Index = Original Price IndexPrice Index of the year on which it has to be shifted×100\displaystyle \frac{\text{Original Price Index}}{\text{Price Index of the year on which it has to be shifted}} \times 100

If Laspeyres's Index Number is 250 and Paasche's Index Number is 160, then Fisher's Index number is

If ∑P0q0=240\displaystyle \sum P_0q_0 = 240, ∑P1q0=480\displaystyle \sum P_1q_0 = 480, ∑P0q1=600\displaystyle \sum P_0q_1 = 600 and ∑P1q1=192\displaystyle \sum P_1q_1 = 192, then Laspeyres's Index Number is

If ΣPnqn=249\displaystyle \Sigma P_n q_n = 249, ΣP0q0=150\displaystyle \Sigma P_0 q_0 = 150, ΣPnq0=145\displaystyle \Sigma P_n q_0 = 145 and Paasche's Index Number = 150, then Fisher's Ideal Price Index Number is

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