The monthly per capita expenditure incurred by workers for an industrial centre during 1980 and 2005 on the following items - Economics - Index Numbers

Question

The monthly per capita expenditure incurred by workers for an
industrial centre during 1980 and 2005 on the following items are
given below The weights of these items are 75, 10, 5, 6 and 4
respectively Prepare a weighted index number for cost of living for
2005 with 1980 as the base
 
Items
Price in 1980
Price in 2005
Food
100
200
Clothing
20
25
Fuel and Lighting
15
20
House rent
30
40
Misc
35
65

Bhawna Madaan · Accepted Answer

Items Price in 1980 P0 Price in 2005 P1 Weight W

RW Food 100 200 75

15,000 Clothing 20 25 10

1,250 Fuel and Lighting 15 20 5

666 65 House Rent 30 40 6

799 98 Misc 35 65 4

742 84

Items	Price in 1980 P₀	Price in 2005 P₁	Weight W	RW
Food	100	200	75	15,000
Clothing	20	25	10	1,250
Fuel and Lighting	15	20	5	666.65
House Rent	30	40	6	799.98
Misc.	35	65	4	742.84