Question
Construct the index number by Paasche’s method.
✓
Answer
Steps: $\Sigma p_1 q_1=$ Sum total of product of the $P_1$ and $q_1$
$\Sigma p _1 q _1=$ Sum total of product $P _0$ and $q _1$
$ p _{01}=\frac{\Sigma p_1 q_1}{\Sigma p_0 q_1} \times 100$
$=\frac{38,720}{31,520} \times 100$
$=122.84 $
Hence $P_{01}=122.84$
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