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Alex Gerg
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Do
My
Statistics:
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Quantity in 2002
5 quintals
4 quintals
2 quintals
1 quintal
3 quintals
Price in 2003
4
5
6
3
15
Price in 2004
6
7
8
2
20
Statisticshelpdesk
Solution :
(a)Computation of the cost of living index number by the aggregative
expenditure method
Items
Quantity in
the baseyear 2003
(qo)
5
4
2
1
3
-
A
B
C
D
E
Total
Price in the
base year
2003
(po)
4
5
6
3
15
-
Price in the
current
year 2004
(P1)
6
7
8
2
20
-
30
18
16
2
60
136
20
20
12
3
45
100
1 0
0 0
100 =
136
100
100 = 136
Items
Price
Weights
relative
i.e.
P1/p0
p0 q0
(IV)
100
(V)
(1)
A
B
C
D
E
5
4
2
1
3
4
5
6
3
15
6
7
8
2
20
150
140
133
66
133
20
20
12
3
45
3000
2800
1600
200
6000
Total
100
13600
Statisticshelpdesk
Question : 2
From the following indices calculate the weighted cost of living index numbers for the
years 2002,2003 and 2004.
Indices
Items
Weights
2002
2003
2004
(W)
1
IW
1
1W
1
1W
Food
50
110
5500
115
5750
120
600
Clothing
30
100
3000
110
3300
105
3150
Housing
20
95
1900
120
2400
104
2080
Fuel
15
105
1575
108
1620
106
1590
Sundries
5
102
510
112
560
110
550
Total
120
12485
13630
13370
Statisticshelpdesk
Solution :
From the data given below , the cost of living index number for 2003.
Items
Price in 2003
Price in 2004
Food
Fuel
Housing
Clothing
Miscellaneous
160
30
80
40
50
140
25
70
35
40
Percent of total
expenditure
45
15
20
12
8
Here, the percentage of expenses are to be taken as the weights of the respective items of
expenditure.
P1/P0100
1
Food
45
160
140
87.5
Fuel
15
30
25
83.5
Housing
20
80
70
87.5
Clothing
12
40
35
87.5
Misc.
8
50
40
80
Total
100
-
IW
3937.5
1252.5
1750.0
1050.0
640.0
8630.0
8630
01 =
=
= 86.30
100
The above index number shows that the cost of living of the selected group of people has
gone down by 13.70% of the price level of 2003.
Statisticshelpdesk
Question : 3
From the following data, calculate the cost of living index number using the geometric
means.
Items :
Indices :
Weights
Food
400
5
Fuel
200
3
Clothing
250
4
Housing
150
1
Misc.
300
2
Solution :
Computation of the cost of living index number using the geometric mean
Items
Food
Fuel
Clothes
Housing
Misc.
Indices
1
400
200
250
150
300
Log 1
2.6021
2.3010
2.3979
2.1761
2.4771
Weights
W
5
3
4
1
2
W log 1
13.0105.
6.9030
9.5916
2.1761
4.9542
Statisticshelpdesk
Using the geometric mean, the cost of living index number is given by
01 = Antilog of
.1
36.6354
= AL.
15
=AL. 2.4424
= 276.95
Thus, the required Index no. for the period in issue is 277 approx.
Question : 4
From the following data, compute the consumer price Index for the year 2004 w.r.t the
price level of 2003.
Items
Weights
W
Food
Food
Rent
Clothing
Fuel
Misc.
7.5
2
2.5
3
1
Percentage
increase in
Prices
50
60
40
30
20
Index
1
IW
150
160
140
130
120
1125
320
350
390
120
Statisticshelpdesk
Solution :
The consumers Price index is given by
01 =
2305
16
= 144 approx
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