This document provides examples of calculating price index numbers using the simple aggregative method with a fixed base year. It includes the formula and steps for calculation. Two examples are shown with commodities prices for multiple years and calculation of the index numbers for each year relative to the base year. The document concludes with practice problems for the reader to calculate index numbers using the same method.

1. NADEEM UDDIN
ASSOCIATE PROFESSOR
OF STATISTICS
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2. Unweighted index number
Simple Aggregative Method by Fixed Base:
It is obtained by dividing the sum of the prices of current year by
the sum of the prices of base year and expressed as percentage i.e.
100
P
P
I
o
n
n,o 



3. Commodities Price (2010) Price (2011)
A 50 65
B 75 77
C 98 102
D 100 120
E 150 167
Example – 1:
Calculate the price index number for the year 2011 by using
simple aggregative method.

4. Commodities Po
Pn
A 50 65
B 75 77
C 98 102
D 100 120
E 150 167
  473Po   531Pn
Solution:
100
P
P
I
o
n
n,o 


%26.112100
473
531
I 11,10 

5. Commodities
Prices
2005 2006 2007 2008
Sugar 15 16.5 17 18
Wheat 25.4 21.4 25.5 30.4
Rice 15.5 16.2 19 19.5
Gram 13.5 14.3 13.7 14.0
Example – 2:
Calculate index number for the following data. Taking 2005 as
base year by using simple aggregative method.

6. Solution:
Commodities
Sugar 15 16.5 17 18
Wheat 25.4 21.4 25.5 30.4
Rice 15.5 16.2 19 19.5
Gram 13.5 14.3 13.7 14.0
oP 1nP
2nP 3nP
  4.69Po   4.68P 1n   2.75P 2n   9.81P 3n
For 2006: 100
P
P
I
o
n
n,o
1



%56.98100
4.69
4.68
I 06,05 
For 2007: 100
P
P
I
o
n
n,o
2



%36.108100
4.69
2.75
I 07,05 
100
P
P
I
o
n
n,o
3



%01.118100
4.69
9.81
I 08,05 
For 2008:

7. Commodities Price
2000
Price
2002
Wheat 25.4 30.2
Rice 18.9 19.3
Barley 16.3 18.5
Jawar 11.5 13.6
Grams 13.6 13.9
1-Compute the index number using simple aggregative method with base 2000.
Commodities Price
2000
Price
2001
Price
2002
A 81 82 85
B 90 93 95
C 20 22 23
D 15 20 25
E 50 53 56
F 77 78 80
2-Compute the index numbers using simple aggregative method with base 2000.
DO YOURSELF

8. Commodities Price
2002
Price
2003
Price
2004
Price
2005
Price
2006
A 75 52 94 83 50
B 62 44 77 65 48
C 100 118 101 144 155
D 200 203 195 210 215
3-Compute the index numbers using simple aggregative method with base 2002.
Answers
(1).111.44%
(2).104.50% ,109.31%
(3).95.42% ,106.86% ,114.87% ,107.09%