Question

 Construct the index number by Paasche’s method.

Commodities		2016	2017
	Price (Rs)	Qty	Price (Rs)	Qty
A	15	500	20	600
B	18	590	23	640
C	22	450	24	500

Answer 1

Steps : Σp₁ q₁ = Sum total of product of the P₁ and q₁

Σp₁ q₁ = Sum total of product P₀ and q₁

P₀₁ = \(\cfrac{Σp_1q_1}{Σp_0q_1} \times 100\)

\(= \cfrac{39,720}{31,520} \times 100\)

= 122.84 

Hence P₀₁ = 122.84