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NCERT Solutions

Class 11

Statistics

Chapter 7 Index Numbers

NCERT Solutions For Class 11 Statistics Chapter 7 Index Numbers - 2025-26

Q: 8. How do the NCERT solutions for Chapter 7 explain the purpose of the Consumer Price Index (CPI)?

The NCERT solutions explain that the Consumer Price Index (CPI), also known as the cost of living index, is designed to measure the average change in the retail prices of a specific basket of goods and services consumed by a particular class of people. Its primary purpose is to assess the impact of price changes on the cost of living for distinct consumer groups, such as industrial workers or urban non-manual employees, to help in policy-making like wage adjustments.

Index Numbers Questions and Answers - Free PDF Download

In NCERT Solutions for Class 11 Statistics Chapter 7 Index Numbers, you’ll learn how to measure and compare changes in prices or quantities using simple math methods. This chapter will help you understand what index numbers are, why we need them, and how they show trends in things like inflation and the cost of living. If you’ve ever wondered how price changes are tracked or what the Consumer Price Index (CPI) means, you’ll find your answers here.

Table of Content

The easy-to-follow NCERT solutions from Vedantu make each topic super clear, including detailed answers for both theory and numerical problems. You can also download the free PDF for this chapter and revise anytime. If you need to see the full CBSE Class 11 syllabus for Statistics, check the updated syllabus here.

Practicing with these step-by-step NCERT solutions means you’ll feel prepared and confident in your exam. For help with more chapters, visit the Class 11 Statistics NCERT Solutions page anytime.

Questions Included in NCERT Solutions Class 11 Statistics Chapter 7

Students can opt for Vedantu to get access to the NCERT Solutions. The website and app provide all sorts of guidance to CBSE students which can help them score well in exams.

Statistics is all about accuracy and in-depth understanding. Considering the Class 11 syllabus for this subject, students need to refer to good textbooks and solutions to score well. The NCERT Solutions for Class 11 Statistics syllabus includes basic as well as intricate chapters. The chapters include:

Introduction
Collection of Data
Organisation of Data
Presentation of Data
Measures of Central Tendency
Measures of Dispersion
Correlation
Index Numbers
Use of Statistics Tools

Index numbers are used to indicate a change in variable or magnitude over a specified period. It is expressed in a percentage form. Index numbers are required to assess economic changes during a given period. Different types of index numbers include:

Value Index
Quantity Index
Price Index

Class 11 NCERT Solutions Statistics Ch 7 contains 21 question-answers in total. This includes calculative as well as informative questions. Have a look at what the 21 questions are about:

Question 1: The first question in the 7th Chapter of Class 11 NCERT Statistics is of an objective approach. It asks for the term that defines an index number which accounts for the relative importance of the items. Students get three options to select the correct answer from. The correct answer to this particular question is ‘weighted index’. Here students learn about the concept of a weighted index.

Question 2: The second question in NCERT Solutions for Class 11 Statistics for Chapter 7 asks about what the weight in most weighted index numbers pertains to. The answer to this question would be ‘Base year’. Base year refers to the fixed year, which is used for comparing various aspects of the economic index or business activities. Students also get an idea about the Laspeyres method, Fisher’s index method and Paasche’s index through this answer.

Question 3: Question 3 is regarding the impact of change in the price of a commodity with little weight in the index. The three options to this question are ‘small’, ‘large’ and ‘uncertain’. The correct answer to this question would be ‘small’ change. An equal rise in a lower weighted item's price implies a comparatively lower overall change in the price index of that of a more weighted item.

Question 4: This question in NCERT Solutions Class 11 Statistics Chapter 7 is about the aspect on which consumer price index register deviations. This is rather a crucial topic in this chapter. CPI or Consumer Price Index is also known as the cost of living index. It measures the average change in retail prices that implies the most accurate impact of price rise on the cost of living.

Question 5: Through this question, the student gets to know the item which has the highest weight when it comes to the Consumer Price Index for industrial workers. The answer is food. It holds about 57% weight in the CPI for industrial workers.

Question 6: The 6th question in Class 11 Statistics Chapter 7 Index Numbers is about the calculation of inflation. Here students get to know that inflation is determined using the wholesale price index.

Question 7: Question 7 is ‘Why do we need an index number?’ Index numbers help us to calculate a single measure of change of a large number of items. In this solution, you get to know the various uses of Index numbers. NCERT Solutions Class 11 Statistics Chapter 7 lists six uses of the index numbers.

Question 8: This question is about the desirable characteristics of a base period. The answer to this question includes four properties which a base period must possess. This includes the following:

It should be a normal period and not the one in which there have been exceptions.
It should not contain extreme values.
It should not be a year which has passed long back. It must be somewhere near to the current period so that a relevant comparison can be drawn.
It should be updated as required.

Question 9: Question 9 in NCERT Solutions Class 11 Statistics Chapter 7 discusses why it is important to have different CPI for different types of consumers. CPI is calculated for three various types of consumers. This includes industrial workers, agricultural workers and urban non-manual employees.

Question 10: This question discusses what CPI for industrial workers measure. This points to the average change in retail prices of commodities which are generally consumed by industrial workers.

Question 11: Answer 11 in NCERT Solutions Class 11 Statistics Chapter 7 details the difference between the price index and quantity index. There are 3 points in total.

Question 12: Here, students learn if the change in any price is reflected in a price index number. The answer is no. The change is not reflected in a price index number.

Question 13: The 13th question is ‘Can the CPI number for urban non-manual employees represent the changes in the cost of living of the President of India?’. You can refer to the NCERT Solutions to get a detailed answer to this question.

Question 16: This question asks students to list the important items of consumption in their family. This could include food, clothing, electricity, education, house rent and so on.

Question 14, 15, 17, 18, 19, 20, and 21 are numerical problems. NCERT Solutions Class 11 Statistics Chapter 7 gives perfect solutions to these sums. It contains statements too so that students can easily understand the solutions.

CBSE Class 11 Statistics Chapter 7 Other Study Materials

S. No	Important Study Material Links for Chapter 7 Index Numbers
1.	Class 11 Index Numbers Important Questions
2.	Class 11 Index Numbers Revision Notes

Chapter-wise NCERT Solutions for Class 11 Statistics

S. No	NCERT Solutions Class 11 Statistics Chapter-wise List
1	Chapter 1 - Introduction to Statistics Solutions
2	Chapter 2 - Collection of Data Solutions
3	Chapter 3 - Organisation of Data Solutions
4	Chapter 4- Presentation of Data Solutions
5	Chapter 5 - Measures of Central Tendency Solutions
6	Chapter 6 - Correlation Solutions
7	Chapter 8 - Use of Statistical Tools Solutions

Important Related Links for CBSE Class 11 Statistics

S. No	Other Study Materials for CBSE Class 11 Economics
1	CBSE Class 11 Economics NCERT Solutions
2	CBSE Class 11 Economics Important Questions
3	CBSE Class 11 Economics Sample Papers
4	CBSE Class 11 Economics NCERT Textbook
5	CBSE Class 11 Economics Syllabus

FAQs on NCERT Solutions For Class 11 Statistics Chapter 7 Index Numbers - 2025-26

1. Where can I find reliable, step-by-step NCERT Solutions for Class 11 Statistics Chapter 7?

You can find expert-verified and accurate NCERT Solutions for Class 11 Statistics Chapter 7 (Index Numbers) on Vedantu. These solutions are crafted by subject matter experts to provide clear, step-by-step methods for every problem, strictly following the CBSE 2025-26 syllabus and guidelines.

2. How many questions are covered in the NCERT Solutions for Class 11 Statistics Chapter 7?

The NCERT textbook for Class 11 Statistics Chapter 7 contains a total of 21 questions. The solutions cover all of these, including both theoretical questions that build concepts and numerical problems that require calculation, ensuring comprehensive preparation.

3. What is the correct method to solve numerical problems on index numbers as per the NCERT textbook?

To solve numerical problems on index numbers as per the NCERT solutions, you should follow these steps:

Identify Data: Clearly distinguish between the base year and the current year data (prices and quantities).
Choose the Formula: Select the appropriate index number formula based on the question (e.g., Laspeyres', Paasche's, or Fisher's method).
Substitute Values: Carefully place the values of prices (p₀, p₁) and quantities (q₀, q₁) into the chosen formula.
Calculate: Perform the calculations to arrive at the final index number, which is typically expressed as a percentage.

4. Why is choosing a suitable base period crucial when solving problems in Chapter 7?

Choosing a suitable base period is crucial because it serves as a stable benchmark for comparison. An inappropriate base period can distort the index number and lead to incorrect conclusions. As explained in the NCERT solutions, a desirable base period must be:

A normal period: Free from unusual events like wars, droughts, or economic crises.
Not too distant: The period should be recent enough to ensure a relevant and meaningful comparison with the current period.

This ensures that the index number accurately reflects changes in variables rather than the effects of an abnormal baseline.

5. How do the NCERT Solutions for Chapter 7 differentiate between a Price Index and a Quantity Index?

The NCERT Solutions explain the key difference between a Price Index and a Quantity Index based on what they measure while holding the other variable constant:

A Price Index Number measures the average change in the prices of a basket of goods and services over time, keeping the quantity constant.
A Quantity Index Number measures the change in the physical volume or quantity of goods produced, consumed, or sold, keeping the prices constant.

In essence, one tracks price inflation, while the other tracks changes in output or consumption levels.

6. What are the main types of weighted index numbers covered in the NCERT Class 11 Statistics Chapter 7 solutions?

The NCERT solutions for Chapter 7 primarily cover the following major types of weighted index numbers, which account for the relative importance of different items:

Laspeyres' Method: Uses base year quantities (q₀) as weights.
Paasche's Method: Uses current year quantities (q₁) as weights.
Fisher's Method: The geometric mean of Laspeyres' and Paasche's indices, often considered the 'ideal' index number as it balances the biases of the other two.

7. Can a change in the price of a single, low-weightage commodity significantly affect a weighted index number?

No, a change in the price of a commodity with very little weight will have a small and often negligible impact on the overall weighted index number. The solutions for Chapter 7 demonstrate that the purpose of assigning weights is to ensure that the index reflects the relative importance of each item. Therefore, a price fluctuation in a high-weightage item will have a much more significant effect on the index than the same fluctuation in a low-weightage item.

8. How do the NCERT solutions for Chapter 7 explain the purpose of the Consumer Price Index (CPI)?

The NCERT solutions explain that the Consumer Price Index (CPI), also known as the cost of living index, is designed to measure the average change in the retail prices of a specific basket of goods and services consumed by a particular class of people. Its primary purpose is to assess the impact of price changes on the cost of living for distinct consumer groups, such as industrial workers or urban non-manual employees, to help in policy-making like wage adjustments.

9. Are the NCERT Solutions for Class 11 Statistics Chapter 7 on Vedantu aligned with the latest 2025-26 syllabus?

Yes, absolutely. All NCERT Solutions provided by Vedantu, including those for Class 11 Statistics Chapter 7, are meticulously reviewed and updated by our subject matter experts to be fully compliant with the latest CBSE 2025-26 curriculum. This ensures that you are preparing with the most current and relevant material for your exams.