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in 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994 and more over it was 50% more than in 1997 to price relatives using 1995 as base. reduce the data is:
? Related: Unit 1: Index Numbers (Part-2)
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in 1996 the average price of a commodity was 20% more than in 1995 but...
Introduction:
In this problem, we are asked to reduce the data of commodity prices using 1995 as the base year.
Given Data:
- Price in 1996: 20% more than 1995
- Price in 1996: 20% less than 1994
- Price in 1996: 50% more than 1997
Solution:
To reduce the data, we need to calculate the price relatives using 1995 as the base year. Here's how we can do it:
Step 1: Calculate the price relative for 1994
- Price relative for 1994 = (Price in 1994 / Price in 1995) x 100
- Price in 1996 was 20% less than the price in 1994, so we can write:
Price in 1994 = Price in 1996 / 0.8
- Substituting this value in the formula for price relative, we get:
Price relative for 1994 = (Price in 1996 / 0.8) / Price in 1995 x 100 = 125
Step 2: Calculate the price relative for 1996
- Price relative for 1996 = (Price in 1996 / Price in 1995) x 100
- Price in 1996 was 20% more than the price in 1995, so we can write:
Price in 1996 = Price in 1995 x 1.2
- Substituting this value in the formula for price relative, we get:
Price relative for 1996 = (Price in 1995 x 1.2) / Price in 1995 x 100 = 120
Step 3: Calculate the price relative for 1997
- Price relative for 1997 = (Price in 1997 / Price in 1995) x 100
- Price in 1996 was 50% more than the price in 1997, so we can write:
Price in 1997 = Price in 1996 / 1.5
- Substituting this value in the formula for price relative, we get:
Price relative for 1997 = (Price in 1996 / 1.5) / Price in 1995 x 100 = 80
Step 4: Create the index numbers using 1995 as the base year
- To create the index numbers, we divide the price relatives by 100 and multiply by 100. This gives us the index numbers with 1995 as the base year.
- Index number for 1994 = 125/100 x 100 = 125
- Index number for 1995 = 100
- Index number for 1996 = 120/100 x 100 = 120
- Index number for 1997 = 80/100 x 100 = 80
Conclusion:
In this way, we have reduced the given data using 1995 as the base year and created the index numbers for each year. This allows us to compare the prices of commodities over time and analyze the trends.
In this problem, we are asked to reduce the data of commodity prices using 1995 as the base year.
Given Data:
- Price in 1996: 20% more than 1995
- Price in 1996: 20% less than 1994
- Price in 1996: 50% more than 1997
Solution:
To reduce the data, we need to calculate the price relatives using 1995 as the base year. Here's how we can do it:
Step 1: Calculate the price relative for 1994
- Price relative for 1994 = (Price in 1994 / Price in 1995) x 100
- Price in 1996 was 20% less than the price in 1994, so we can write:
Price in 1994 = Price in 1996 / 0.8
- Substituting this value in the formula for price relative, we get:
Price relative for 1994 = (Price in 1996 / 0.8) / Price in 1995 x 100 = 125
Step 2: Calculate the price relative for 1996
- Price relative for 1996 = (Price in 1996 / Price in 1995) x 100
- Price in 1996 was 20% more than the price in 1995, so we can write:
Price in 1996 = Price in 1995 x 1.2
- Substituting this value in the formula for price relative, we get:
Price relative for 1996 = (Price in 1995 x 1.2) / Price in 1995 x 100 = 120
Step 3: Calculate the price relative for 1997
- Price relative for 1997 = (Price in 1997 / Price in 1995) x 100
- Price in 1996 was 50% more than the price in 1997, so we can write:
Price in 1997 = Price in 1996 / 1.5
- Substituting this value in the formula for price relative, we get:
Price relative for 1997 = (Price in 1996 / 1.5) / Price in 1995 x 100 = 80
Step 4: Create the index numbers using 1995 as the base year
- To create the index numbers, we divide the price relatives by 100 and multiply by 100. This gives us the index numbers with 1995 as the base year.
- Index number for 1994 = 125/100 x 100 = 125
- Index number for 1995 = 100
- Index number for 1996 = 120/100 x 100 = 120
- Index number for 1997 = 80/100 x 100 = 80
Conclusion:
In this way, we have reduced the given data using 1995 as the base year and created the index numbers for each year. This allows us to compare the prices of commodities over time and analyze the trends.
Community Answer
in 1996 the average price of a commodity was 20% more than in 1995 but...
150,100,120,80??
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in 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994 and more over it was 50% more than in 1997 to price relatives using 1995 as base. reduce the data is: Related: Unit 1: Index Numbers (Part-2)?
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