T.R. Jain and V.K. Ohri Solutions for Class 11 Statistics for Economics Chapter 13 – Index Numbers is regarded as an important concept to be studied thoroughly by the students. Here, we have provided T.R. Jain and V.K. Ohri Solutions for Class 11.
Board | CBSE |
Class | Class 11 |
Subject | Statistics for Economics |
Chapter | Chapter 13 |
Chapter Name | Index Numbers |
Number of questions solved | 02 |
Category | T.R. Jain and V.K. Ohri |
Chapter 13 – Index Numbers covers the below-mentioned concepts:
- Concept and definition of Index Numbers
- Characteristics of Index Numbers
- Constructed of weighted Index Numbers
- Fisher’s Index Numbers as an ideal method
- Consumer price index or cost of living Index Number
T.R. Jain and V.K. Ohri Solutions for Class 11 Statistics for Economics Chapter 13 – Index Numbers
Question 1
What is Index Number?
Answer: According to Croxton and Cowden, “Index numbers are devices for measuring the difference in the magnitude of a group of related variables.”
Question 2
The following are the prices of commodities in 2004 and 2018. Construct a price index based on price relatives taking 2004 as the base year.
Commodity | A | B | C | D | E |
Price in 2004 | 50 | 40 | 80 | 110 | 20 |
Price in 2018 | 40 | 60 | 90 | 120 | 20 |
Solution:
Construction of a price index-
Simple average of price relatives
Commodity | Price in 2004 (P0) | Price in 2018 (P1) | Price Relatives \(\left(\frac{P1}{P0}\times100\right)\) |
A | 50 | 70 | \(\frac{70}{50}\times 100=140\) |
B | 40 | 60 | \(\frac{60}{40}\times 100=150\) |
C | 80 | 90 | \(\frac{90}{80}\times 100=112.5\) |
D | 110 | 120 | \(\frac{120}{110}\times 100=109.1\) |
E | 20 | 20 | \(\frac{20}{20}\times 100=100\) |
N = 5 | \(\sum\left(\frac{P1}{P0}\times100\right)=611.6\) |
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