Question

Calculate the fishers ideal index from the following data commodity base year current year price quantity price quantity A 6 50 10 56
B 2 100 2 120
C 4 60 6 60
D 10 30 12 24

Answer 1

Answer:

Fisher's ideal index = 136.79

Step-by-step explanation:

  p0 q0 p1 q1

A 6  50  10  56

B 2  100  2  120

C 4  60   6    60

D 10 30   12  24

   p0q0   p1q0   p0q1  p1q1

A  300     500    336    560

B   200    200    240    240

C   240     360    240    360

D   300     360    240   288

∑   1040   1420   1056  1448

 

Fisher's ideal index = √(L* P)

L is Laspeyre's index

P is index Paasche's index

L = ∑ p1q0  / ∑ p0q0  * 100

L = 1420/ 1040 * 100=  136.5

P = ∑ p1q1   / ∑ p0q1 * 100

P = 1448/1056 * 100 = 137.12

Fisher's ideal index = √(L* P)

= √ (136.5* 137.1) = 136.79

Answer 2

Answer:Calculate the fishers ideal index from the following data commodity base year current year price quantity price quantity A 6 50 10 56

B 2 100 2 120

C 4 60 6 60

D 10 30 12 24