Home » Commerce for 11th and 12th Standard Students » T.R. Jain and V.K. Ohri Solutions Class 11 Statistics Economics Chapter 13 – Index Numbers

T.R. Jain and V.K. Ohri Solutions Class 11 Statistics Economics Chapter 13 – Index Numbers

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.

BoardCBSE
ClassClass 11
SubjectStatistics for Economics
ChapterChapter 13
Chapter NameIndex Numbers
Number of questions solved02
CategoryT.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.

CommodityABCDE
Price in 200450408011020
Price in 201840609012020

Solution:

Construction of a price index-

Simple average of price relatives

CommodityPrice in 2004 (P0)Price in 2018 (P1)Price Relatives

\(\left(\frac{P1}{P0}\times100\right)\)

A5070\(\frac{70}{50}\times 100=140\)
B4060\(\frac{60}{40}\times 100=150\)
C8090\(\frac{90}{80}\times 100=112.5\)
D110120\(\frac{120}{110}\times 100=109.1\)
E2020\(\frac{20}{20}\times 100=100\)
N = 5\(\sum\left(\frac{P1}{P0}\times100\right)=611.6\)
\(P_{01}=\frac{\sum\left(\frac{P_1}{P_0}\times100\right)}{N}\) \(=\frac{611.6}{5}=122.32\)

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