The following weights were used for the calculation of a certain cost of living index numbers: Food 20, clothing 8, rent 9, fuel and light 7, miscellaneous 6. If the average percentage increase in prices of commodities in the various groups over the base period were 42, 64, 57, 88 and 68 respectively, calculate the index for the period. Suppose Mr. X was earning $. 12,000 in the base period, what should be his salary in the current period so that his living standard will remain same as that of the base period?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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The following weights were used for the
calculation of a certain cost of living index
numbers: Food 20, clothing 8, rent 9, fuel and
light 7, miscellaneous 6. If the average
percentage increase in prices of commodities
in the various groups over the base period were
42, 64, 57, 88 and 68 respectively, calculate the
index for the period. Suppose Mr. X was
earning $. 12,000 in the base period, what
should be his salary in the current period so
that his living standard will remain same as
that of the base period?
Transcribed Image Text:The following weights were used for the calculation of a certain cost of living index numbers: Food 20, clothing 8, rent 9, fuel and light 7, miscellaneous 6. If the average percentage increase in prices of commodities in the various groups over the base period were 42, 64, 57, 88 and 68 respectively, calculate the index for the period. Suppose Mr. X was earning $. 12,000 in the base period, what should be his salary in the current period so that his living standard will remain same as that of the base period?
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