Question

Construct Fisher's Index from the following data for the year 2020.
Price(2020)
Quantity
(2020)
60
commodity Price(2010) Quantity
(2010)
5
50
6
15
8
8
D
7
20
10
OD
7
8
11
10
12
15​

Answer 1

Answer:

i) Laspeyre's Method

p01=Σp1q0Σp0q0×100=19351555×100=124.44

(ii) Paasche's Method

p01=Σp1q1Σp0q1×100=23741908×100=124.42

(iii) Fisher's Method

p01=Σp1q0Σp0q0×Σp1q1Σp0q1−−−−−−−−−−√×100or, p01 =19351555×23741908−−−−−−−−−√×100⇒p01 =45936902966940−−−−−√×100=124.43