The formula for simple aggregative price index is: MCQ with Answer and Explanation

The formula for simple aggregative price index is:
A. (Σp₁q₁ / Σp₀q₁) × 100
B. (Σp₁ / Σp₀) × 100
C. (Σp₁q₀ / Σp₀q₀) × 100
D. (Σp₀ / Σp₁) × 100
Answer: Option B
Solution (By JKExamLibrary)
Simple aggregative index sums current prices and divides by sum of base prices, multiplied by 100.

This question belongs to: Accountancy and Statistics Statistics

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For a given data, Σp₁q₀ = 600, Σp₀q₀ = 500, Σp₁q₁ = 700, Σp₀q₁ = 600. The value index is:
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Correct Answer: Option B


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