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Given ∑p0q0=800\sum p_0 q_0 = 800, ∑p0q1=1500\sum p_0 q_1 = 1500, ∑p1q1=1300\sum p_1 q_1 = 1300 and ∑p1q0=900\sum p_1 q_0 = 900, where subscripts 0 and 1 are used for base year and current year respectively. The Paasche's index number is:

Solution

✅ Correct Option: 4

Paasche's index =(∑p1q1/∑p0q1)×100=(1300/1500)×100≈86.67≈86.7= (\sum p_1 q_1 / \sum p_0 q_1) \times 100 = (1300/1500) \times 100 \approx 86.67 \approx 86.7.

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