Compute a weighted index number of the following data using price relative met

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Compute a weighted index number of the following data using price relative method:

$\begin{matrix} Item & Price in 1997 (P0) & Price in 2011 (P1) & Quantity consumed in 1997 Rice & 2 & 3 & 24 Cotton & 4 & 5 & 14 Sugar & 6 & 9 & 8 Wheat & 10 & 12 & 4 Other Cereals & 5 & 5 & 8 \end{matrix}$

Options:

A . 135

B . 134

C . 133

D . 132

Answer: Option A
:
A

Look at the table below:

$\begin{matrix} Item & Price in 1997 (P0) & Price in 2011 (P1) & Quantity & Price relative =R = & Weighted consumed in 1997 (W) & (\frac{P 1}{P 0}) & Price relative = WR Rice & 2 & 3 & 24 & \frac{3}{2} = 1.5 & 1.5 \times 24 = 36 Cotton & 4 & 5 & 14 & \frac{5}{4} = 1.25 & 1.25 \times 14 = 17.5 Sugar & 6 & 9 & 8 & \frac{9}{6} = 1.5 & 1.5 \times 8 = 12 Wheat & 10 & 12 & 4 & \frac{12}{10} = 1.2 & 1.2 \times 4 = 4.8 Other Cereals & 5 & 5 & 8 & \frac{5}{5} = 1 & 1 \times 8 = 8 Total & 58 & 78.3 \end{matrix}$
$P 01 = \frac{\sum W R}{\sum W} * 100 = \frac{78.3}{58} * 100 = 135$

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