Chain relative

Maths & Stats

P1/P0 That mean we can divide from Year 1 price index to base and multiply by 100.? [Video Time Stamp: 09:13] Video Details ------------- Statistics Index Numbers #3. Constructing an Index

SriVidhya M S

CA Foundation

★ 450

13-Apr-26 20:07

Answers (1)

The Price Index Number (P₀₁) using the Simple Aggregate Method is calculated by dividing the sum of the prices in the current year (ΣP₁) by the sum of the prices in the base year (ΣP₀), and then multiplying by 100. This gives a measure of the overall change in prices from the base year to the current year

Pavan Kumar

Faculty

14-Apr-26 13:28