Given that $∑p_0q_0= 1000, ∑p_0q_1=1200, ∑p_1q_0=1350, ∑p_1q_1= 1500, $ where subscripts 0 and 1 used for base year and current year respectively. The Paasche's Index number is : |
112.5 125 135 111.11 |
125 |
$\text{Paasche’s Price Index }=\frac{\sum p_1 q_1}{\sum p_0 q_1}\times100.$ $=\frac{1500}{1200}\times100.$ $=125.$ $\text{Paasche’s Index Number}=125.$ |