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The index number for the year 2012 taking 2011 as the base year from the data given below by using simple average of price relative method is Commodity A B AND Price in 2011 115 108 95 80 90 Price in 2012 125 117 108 95 95 (a) 112 Correct answer is D (b) 117 (c) 120 (d). 111?
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The index number for the year 2012 taking 2011 as the base year from t...
Calculation of Index Number using Simple Average of Price Relative Method

Given data:

Commodity | Price in 2011 | Price in 2012
--- | --- | ---
A | 115 | 125
B | 108 | 117
C | 95 | 108
D | 80 | 95
E | 90 | 95

Step 1: Calculate the price relatives

Price relative = (Price in current year / Price in base year) x 100

Commodity | Price in 2011 | Price in 2012 | Price Relative
--- | --- | --- | ---
A | 115 | 125 | (125/115) x 100 = 108.7
B | 108 | 117 | (117/108) x 100 = 108.3
C | 95 | 108 | (108/95) x 100 = 113.7
D | 80 | 95 | (95/80) x 100 = 118.75
E | 90 | 95 | (95/90) x 100 = 105.6

Step 2: Calculate the simple average of price relatives

Simple average of price relatives = (sum of price relatives) / (number of commodities)

= (108.7 + 108.3 + 113.7 + 118.75 + 105.6) / 5

= 555.05 / 5

= 111.01

Therefore, the index number for the year 2012 taking 2011 as the base year from the given data using the simple average of price relative method is 111.01, which is closest to option (d) 111.
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The index number for the year 2012 taking 2011 as the base year from the data given below by using simple average of price relative method is Commodity A B AND Price in 2011 115 108 95 80 90 Price in 2012 125 117 108 95 95 (a) 112 Correct answer is D (b) 117 (c) 120 (d). 111?
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The index number for the year 2012 taking 2011 as the base year from the data given below by using simple average of price relative method is Commodity A B AND Price in 2011 115 108 95 80 90 Price in 2012 125 117 108 95 95 (a) 112 Correct answer is D (b) 117 (c) 120 (d). 111? 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 The index number for the year 2012 taking 2011 as the base year from the data given below by using simple average of price relative method is Commodity A B AND Price in 2011 115 108 95 80 90 Price in 2012 125 117 108 95 95 (a) 112 Correct answer is D (b) 117 (c) 120 (d). 111? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The index number for the year 2012 taking 2011 as the base year from the data given below by using simple average of price relative method is Commodity A B AND Price in 2011 115 108 95 80 90 Price in 2012 125 117 108 95 95 (a) 112 Correct answer is D (b) 117 (c) 120 (d). 111?.
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