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Identify the prices for the base year (2005) and the current year (2010).

Physics

ScanSolve AI Answer

Answer

150\text{150}

Step-by-step solution

4 steps
  1. Identify the prices for the base year (2005) and the current year (2010).

    Prices in 2005 (P0P_0):
    Commodity A: 12
    Commodity B: 16
    Commodity C: 10

    Prices in 2010 (PnP_n):
    Commodity A: 20
    Commodity B: 25
    Commodity C: 12

  2. Calculate the sum of prices for the base year (∑P0\sum P_0).

    ∑P0=12+16+10=38\sum P_0 = 12 + 16 + 10 = 38
  3. Calculate the sum of prices for the current year (∑Pn\sum P_n).

    ∑Pn=20+25+12=57\sum P_n = 20 + 25 + 12 = 57
  4. Apply the formula for the Price Index Number using the simple aggregative method.

    The formula is:

    Price Index Number=∑Pn∑P0×100\text{Price Index Number} = \frac{\sum P_n}{\sum P_0} \times 100

    Substitute the calculated sums into the formula:

    Price Index Number=5738×100\text{Price Index Number} = \frac{57}{38} \times 100 Price Index Number=1.5×100\text{Price Index Number} = 1.5 \times 100 Price Index Number=150\text{Price Index Number} = 150

    The Price Index Number using the simple aggregative method is 150\boxed{\text{150}}.

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