Explanation:
Paasche index = Σ(p₁q₁)/Σ(p₀q₁) × 100, using current period quantities (q₁) as weights, which may understate inflation due to substitution effects but reflects current consumption patterns.
Explanation:
P(A∪B)=P(A)+P(B)-P(A∩B). To maximize P(B) given P(A∪B)=0.7 and P(A)=0.4, set P(A∩B)=P(A)=0.4 (i.e., A⊂B). Then 0.7=0.4+P(B)-0.4 => P(B)=0.7 max.
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