Question

33. For the following data compute Fisher's ideal index number
Show that Fisher's index number satisfies Time Reversal Test
and Factor Reversal Test for the given data.
Item
А
Price(in Rs) Quantity
2008 2009 2008 2009
9 9 3 6
20 21 9 10
10 15 5
6
Ans : 112.98
B
C​

Answer 1

Explanation:

me reversal test is a test to determine whether a given method will work both ways in time,forward and backward, where Po1is the index for time ‘1’ on time ‘0’ as base and P10is theindex for time ‘0’ on time ‘1’ as base, i.e. Po1x P10= 1. If the product is not unity, there issaid to be a time bias in the method.Factor reversal test:If fefines that the product of price index and the quantity index should be equal to thecorresponding value index. It is given by P01x Q01= V019

Answer 2

Answer:

Commodity Prices in 2015

(p0) Prices in 2011

(p1)

A

B

C

D

E 50

40

10

5

2 80

60

20

10

6

∑ p0 = 107 ∑ p1 =