Construct a Paasche index for 2004 using the data. Use 1999 as the base year and assume that in 2004, 60% of the cost of a townhouse was in materials.
Construction and Paving, a company whose primary business has been constructing homes in planned communities in the upper Midwest. The company has kept a record of the relative cost of labor and materials in its market areas for the last 11 years. These data are as follows: