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 :
Answer & explanation
Correct answer: option 2
$\text{Paasche’s Price Index }=\frac{\sum p_1 q_1}{\sum p_0 q_1}\times100.$
$=\frac{1500}{1200}\times100.$
$=125.$
$\text{Paasche’s Index Number}=125.$