Given $∑p_0q_0=800, ∑p_0q_1=1500, ∑p_1q_1= 1300$ and $∑p_1q_0= 900, $ where subscripts 0 and 1 are used for base year and current year respectively. The Paasche's index number is : |
88.9 115.4 144.4 86.7 |
86.7 |
Paasche’s price index formula $P_p=\frac{\sum p_1 q_1}{\sum p_0 q_1}\times100$ Given $\sum p_1 q_1=1300$ $\sum p_0 q_1=1500$ Substitute $P_p=\frac{1300}{1500}\times100$ $=\frac{13}{15}\times100$ $=86.67$ Paasche’s index number = 86.67 |