Suitable Index Numbers and Formula for Commodity Prices

Introduction
Index numbers are commonly used to measure changes in the price levels of commodities or services over time. The formula used to calculate index numbers depends on the data being analyzed. In this case, we will determine the suitable index numbers for commodity prices based on the given data.

Data Given
Commodity prices relative.
- Weight A: 125, Weight B: 67, Weight C: 250
- Weight A: 5, Weight B: 2, Weight C: 3

Suitable Index Numbers
To determine the suitable index numbers, we will use the weighted aggregate method. This method takes into account the weights of each commodity and calculates the average price change.

Formula
The formula for weighted aggregate method is:
Index Number = (Σ(PnQn) / Σ(P0Qn)) x 100

Where:
- Pn = price of commodity in the current period
- P0 = price of commodity in the base period
- Qn = quantity of commodity in the current period
- Σ = summation of values

Calculation
Using the formula, we can calculate the suitable index numbers for the given data:
- Weight A: (125/125) x 100 = 100
- Weight B: (67/125) x 100 = 53.6
- Weight C: (250/125) x 100 = 200

Therefore, the suitable index numbers for commodity prices are:
- Weight A: 100
- Weight B: 53.6
- Weight C: 200

Conclusion
In conclusion, the suitable index numbers for commodity prices can be determined using the weighted aggregate method. This method takes into account the weights of each commodity and calculates the average price change. The formula used for this method is: Index Number = (Σ(PnQn) / Σ(P0Qn)) x 100.