Calculate Paasche's Price Index Number.

157.33

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153.14

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153.33

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157.14

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Solution

The correct option is B $157.14$
Item Base Year Base Year Current Year Current Year $P_{0} Q_{1}$ $P_{1} Q_{1}$
$P_{0}$ $Q_{0}$ $P_{1}$ $Q_{1}$
$A$ $2$ $5$ $3$ $4$ $8$ $12$
$B$ $1$ $2$ $2$ $3$

$3$ $6$
$C$ $3$ $1$ $4$ $1$

$3$ $4$

$14$ $22$
Paasche Price Index Number
$P_{01} = \frac{\sum P_{1} Q_{1}}{\sum P_{0} Q_{1}} \times 100 = \frac{22}{14} \times 100 = 157.14$

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Similar questions

Calculate Laspeyre's and Paasche's price index number on the basis of the following data:

$\begin{matrix} Commodity & A & B & C & D & E Base Year Price (p_{0}) & 10 & 25 & 30 & 15 & 20 Curreny Year Price (p_{1}) & 15 & 40 & 45 & 30 & 25 Base Year Quantity (q_{0}) & 6 & 10 & 15 & 20 & 8 Current Year Quantity (q_{1}) & 8 & 20 & 12 & 15 & 6 \end{matrix}$

What are the disadvantages in using Paasche's formula for the construction of a price index number?

Q. Which of these method of index number uses arithmetic average of the Laspeyres and Paasche's index.

Q. Calculate price index number for 2016 of following data by weighted aggregative method using (a) Laspeyre's method, (b) Paasche's method, (c) Fisher's method.

Commodity	Price (2012)	Quantity (2012)	Price (2016)	Quantity (2016)
A	4	20	6	10
B	3	15	5	23
C	2	25	3	15
D	5	10	4	15

Q. Laspeyre's index

= 110

, Paasche's index

= 108

, then Fisher's Ideal index is equal to:

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Item	Base Year	Base Year	Current Year	Current Year	$P_{0} Q_{1}$	$P_{1} Q_{1}$
	$P_{0}$	$Q_{0}$	$P_{1}$	$Q_{1}$
$A$	$2$	$5$	$3$	$4$	$8$	$12$
$B$	$1$	$2$	$2$	$3$	$3$	$6$
$C$	$3$	$1$	$4$	$1$	$3$	$4$
					$14$	$22$

Calculate Paasche's Price Index Number.=?

The correct option is B 157.14ItemBase YearBase YearCurrent YearCurrent YearP0Q1P1Q1P0Q0P1Q1A2534812B122336C3141341422Paasche Price Index NumberP01=∑P1Q1∑P0Q1×100=2214×100=157.14

Calculate Paasche's Price Index Number.