Q.Using the same data as Example 5 (A: p0=10,q0=20,p1=15,q1=18; B: p0=8,q0=30,p1=10,q1=25; C: p0=5,q0=50,p1=6,q1=55; D: p0=12,q0=15,p1=14,q1=12), calculate the price index number by Paasche's Method.

Paasche's Method prices the CURRENT-year basket at both years' prices, using current-year quantities as the weight. …

Step 1 — Compute $p_1q_1$ and $p_0q_1$ for each commodity.

Plausibility cross-check against Laspeyres (Example 5). L = 127.59 and P = 127.41 are close but genuinely different, exactly as expected — the two formulae use different quantity weights ($q_0$ vs $q_1$) on the same price data, so a …

Re-using the $\sum p_1q_0$ and $\sum p_0q_0$ totals already computed for Laspeyres (Example 5) instead of computing the DIFFERENT totals $\sum p_1q …