An index of two store items for 2007 based on 2005 is to be constructed. The information for the prices and quantities for both years is given below. Use 2005 as the base period and 100 as the base value.
2005 2007
Item Price ($) Quantity Price ($) Quantity
Item 1 80 503 91 529
Item 2 45 1158 52 1251
For full marks your answer should be accurate to at least one decimal place.
Determine Paasche's price index.