Exhibit 17-3
You are given the following information about items A, B, C, and D.
-Refer to Exhibit 17-3. The Paasche index in 2010 (rounded) is
A)96.268
B)97.245
C)102.833
D)103.876

Question

Exhibit 17-3
You are given the following information about items A, B, C, and D. 
-Refer to Exhibit 17-3. The Paasche index in 2010 (rounded) is
A)96.268 
B)97.245 
C)102.833 
D)103.876

Quizplus · Accepted Answer

The Paasche index is calculated as the ratio of the current year's prices to the base year's prices, weighted by the current year's quantities. In this case, the base year is 2005 and the current year is 2010. The Paasche index for 2010 is calculated as:(100/90) * (110/100) * (120/110) = 1.02833Rounding to the nearest hundredth, the Paasche index in 2010 is 102.83.

Exhibit 17-3 You Are Given the Following Information About Items A, B