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If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145, then the Fisher's Ideal Index Number is?
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If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh a...
Fisher's Ideal Index Number Calculation:
To calculate Fisher's Ideal Index Number, we need to follow the below steps:
Step 1: Calculate the value of the Laspeyres price index (LP) and Paasche price index (PP).
LP = ∑(pi0 * qi1) / ∑(pi0 * qi0) * 100
Where,
pi0 = price of ith commodity in base year
qi0 = quantity of ith commodity in base year
qi1 = quantity of ith commodity in current year
PP = ∑(pi1 * qi0) / ∑(pi0 * qi0) * 100
Where,
pi1 = price of ith commodity in current year
Step 2: Calculate the geometric mean of the Laspeyres and Paasche indices.
GM = sqrt(LP * PP)
Step 3: Calculate the Fisher's Ideal Index Number.
FI = (2 * GM * 100) / (LP + PP)
Calculation:
Given, E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145
Step 1:
LP = (100 * (2 * 1 + 1 * 1 + 3 * 2)) / (100 * (2 * 1 + 1 * 1 + 3 * 1)) = 150
PP = (100 * (2 * 2 + 1 * 3 + 3 * 1)) / (100 * (2 * 1 + 1 * 1 + 3 * 1)) = 180
Step 2:
GM = sqrt(150 * 180) = 165.83
Step 3:
FI = (2 * 165.83 * 100) / (150 + 180) = 158.44
Therefore, the Fisher's Ideal Index Number is 158.44.
To calculate Fisher's Ideal Index Number, we need to follow the below steps:
Step 1: Calculate the value of the Laspeyres price index (LP) and Paasche price index (PP).
LP = ∑(pi0 * qi1) / ∑(pi0 * qi0) * 100
Where,
pi0 = price of ith commodity in base year
qi0 = quantity of ith commodity in base year
qi1 = quantity of ith commodity in current year
PP = ∑(pi1 * qi0) / ∑(pi0 * qi0) * 100
Where,
pi1 = price of ith commodity in current year
Step 2: Calculate the geometric mean of the Laspeyres and Paasche indices.
GM = sqrt(LP * PP)
Step 3: Calculate the Fisher's Ideal Index Number.
FI = (2 * GM * 100) / (LP + PP)
Calculation:
Given, E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145
Step 1:
LP = (100 * (2 * 1 + 1 * 1 + 3 * 2)) / (100 * (2 * 1 + 1 * 1 + 3 * 1)) = 150
PP = (100 * (2 * 2 + 1 * 3 + 3 * 1)) / (100 * (2 * 1 + 1 * 1 + 3 * 1)) = 180
Step 2:
GM = sqrt(150 * 180) = 165.83
Step 3:
FI = (2 * 165.83 * 100) / (150 + 180) = 158.44
Therefore, the Fisher's Ideal Index Number is 158.44.
Community Answer
If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh a...
If S Pnqn = 249, S Poqo = 150, Paasche’s Index Number = 150 and Drobiseh and Bowely’s Index number = 145, then the Fisher’s Ideal Index Number is
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If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145, then the Fisher's Ideal Index Number is?
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If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145, then the Fisher's Ideal Index Number is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145, then the Fisher's Ideal Index Number is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145, then the Fisher's Ideal Index Number is?.
If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145, then the Fisher's Ideal Index Number is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145, then the Fisher's Ideal Index Number is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If E P q = 249, EPg = 150, Paasche's Index Number = 150 and Drobiseh and Bowely's Index number = 145, then the Fisher's Ideal Index Number is?.
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