Question

What is the distinctive feature of Paasche's Index Number?

Answer 1

A distinctive feature of Paasche’s index number is that it uses a group of commodities purchased in the current year period as the basis of comparison. The formula for measuring Paasche’s index number is as follows:

P₀₁ = `(sum"p"_1"q"_1)/(sum"p"_0"q"_1) xx 100`