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An enquiry into the budgets of middle class families in a village gave the following information: Expenses on Food 30% Rent 15% Clothing Fuel 10% Others 20% 25% Prices in 2007 100 20 70 20 40 Prices in 2015 90 20 60 10 55 Calculate the price index number based on Weighted Arithmetic Mean of Price Relatives. a) 111.015 b) 101.015 c) 101.970 d) 98.52?
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An enquiry into the budgets of middle class families in a village gave...
To calculate the price index number based on the weighted arithmetic mean of price relatives, we need to follow these steps:

Step 1: Calculate the price relatives for each category
Price relative = (Price in 2015 / Price in 2007) * 100

Food: (90 / 100) * 100 = 90
Rent: (20 / 20) * 100 = 100
Clothing: (60 / 70) * 100 = 85.71
Fuel: (10 / 20) * 100 = 50
Others: (55 / 40) * 100 = 137.5

Step 2: Calculate the weighted price relatives for each category
Weighted price relative = (Price relative * Percentage weight) / 100

Food: (90 * 30) / 100 = 27
Rent: (100 * 15) / 100 = 15
Clothing: (85.71 * 10) / 100 = 8.571
Fuel: (50 * 10) / 100 = 5
Others: (137.5 * 20) / 100 = 27.5

Step 3: Calculate the sum of the weighted price relatives
Sum of weighted price relatives = 27 + 15 + 8.571 + 5 + 27.5 = 83.071

Step 4: Calculate the price index number
Price index number = (Sum of weighted price relatives / Sum of percentage weights) * 100

Sum of percentage weights = 30 + 15 + 10 + 20 + 25 = 100

Price index number = (83.071 / 100) * 100 = 83.071

Therefore, the price index number based on the weighted arithmetic mean of price relatives is 83.071.
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An enquiry into the budgets of middle class families in a village gave the following information: Expenses on Food 30% Rent 15% Clothing Fuel 10% Others 20% 25% Prices in 2007 100 20 70 20 40 Prices in 2015 90 20 60 10 55 Calculate the price index number based on Weighted Arithmetic Mean of Price Relatives. a) 111.015 b) 101.015 c) 101.970 d) 98.52?
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An enquiry into the budgets of middle class families in a village gave the following information: Expenses on Food 30% Rent 15% Clothing Fuel 10% Others 20% 25% Prices in 2007 100 20 70 20 40 Prices in 2015 90 20 60 10 55 Calculate the price index number based on Weighted Arithmetic Mean of Price Relatives. a) 111.015 b) 101.015 c) 101.970 d) 98.52? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An enquiry into the budgets of middle class families in a village gave the following information: Expenses on Food 30% Rent 15% Clothing Fuel 10% Others 20% 25% Prices in 2007 100 20 70 20 40 Prices in 2015 90 20 60 10 55 Calculate the price index number based on Weighted Arithmetic Mean of Price Relatives. a) 111.015 b) 101.015 c) 101.970 d) 98.52? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An enquiry into the budgets of middle class families in a village gave the following information: Expenses on Food 30% Rent 15% Clothing Fuel 10% Others 20% 25% Prices in 2007 100 20 70 20 40 Prices in 2015 90 20 60 10 55 Calculate the price index number based on Weighted Arithmetic Mean of Price Relatives. a) 111.015 b) 101.015 c) 101.970 d) 98.52?.
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