This is a straightforward technique for creating index numbers. In this, the sum of the prices for various commodities in the current year is divided by the corresponding base year price total, and the result is multiplied by 100. p = the sum of prices for the same commodities in the base year. (in Rs) 0 p (in Rs.) Thus option E is correct.
What are the index of number?In mathematics, an index (or indexes) is the power or exponent that is added to a number or variable. For instance, the index of 2 in the number 24 is 4. Indexes is the plural form of the word. Constants and variables are concepts found in algebra.
A statistical tool for determining the amount of changes in a group of connected variables is an index number. It is derived from diverging ratios, from which it depicts the overall trend. It is a measurement of the normal change in a group of related variables between two distinct scenarios.
Therefore, 3 is the index of 7 in this list.
Learn more about index here:
https://brainly.com/question/4692093
#SPJ2