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Introduction to Index Number Test - 7

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  • Question 1
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    Taking 1999 as base year calculate index number of the year 2004

    Year 1999 2000 2001 2002 2003 2004
    Price (Rs) 10 14 16 20 22 24
    Solution

    Here we calculate simple Index No. = P1/P0 × 100
    = 24/10 × 100 = 240

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