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6. Weighted average method example ( Enter your problem )
  1. index number using Weighted aggregate method Example-1
  2. index number using Weighted average of price relatives method Example-2

1. index number using Weighted aggregate method Example-1





1. Find index number using Weighted aggregate method
ItemQuantityPrice0Price1
A351618
B254045
C2060120
D108090
E203045
F152835


Solution:
Weighted aggregate method :
ItemWeight
`w`
Price
`p_0`
Price
`p_1`
`p_0w``p_1w`
A351618560630
B25404510001125
C206012012002400
D108090800900
E203045600900
F152835420525
------------------
Total`sum p_0w=4580``sum p_1w=6480`


Index number by weighted aggregate method

`I=(sum p_1w)/(sum p_0w)xx100`

`=(6480)/(4580)xx100`

`=141.48`

Thus, there is a rise of `(141.48-100)=41.48%` in prices
2. Find index number using Weighted aggregate method
ItemQuantityPrice0Price1
A40160200
B25400600
C55070
D201018
E1023


Solution:
Weighted aggregate method :
ItemWeight
`w`
Price
`p_0`
Price
`p_1`
`p_0w``p_1w`
A4016020064008000
B254006001000015000
C55070250350
D201018200360
E10232030
------------------
Total`sum p_0w=16870``sum p_1w=23740`


Index number by weighted aggregate method

`I=(sum p_1w)/(sum p_0w)xx100`

`=(23740)/(16870)xx100`

`=140.72`

Thus, there is a rise of `(140.72-100)=40.72%` in prices
3. Find index number using Weighted aggregate method
ItemQuantityPrice0Price1
A4022.50
B2033.25
C101.51.75


Solution:
Weighted aggregate method :
ItemWeight
`w`
Price
`p_0`
Price
`p_1`
`p_0w``p_1w`
A4022.580100
B2033.256065
C101.51.751517.5
------------------
Total`sum p_0w=155``sum p_1w=182.5`


Index number by weighted aggregate method

`I=(sum p_1w)/(sum p_0w)xx100`

`=(182.5)/(155)xx100`

`=117.74`

Thus, there is a rise of `(117.74-100)=17.74%` in prices




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