Mathematics · Index Numbers
The formula to calculate the Paasche Price Index (PI) is (where 0 represents base year and n represents current year):
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1PI = ∑ PnQn∑ P0Q0
- 2PI = ∑ PnQ0∑ P0Q0
- 3PI = ∑ P0Q0∑ PnQn
- 4PI = ∑ PnQn∑ P0Qn✓
Correct answer
PI = ∑ PnQn∑ P0Qn
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