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Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number is
(a) 146.13 (b) 154 (c) 148 (d) 156?
(a) 146.13 (b) 154 (c) 148 (d) 156?
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Bowley's index number is 150. Fisher's index number is 149.95. Paasche...
Explanation of Index Numbers:
Bowley's Index Number (150):
- Bowley's index number is calculated by taking the geometric mean of the prices of a fixed basket of goods in two different time periods.
- In this case, the index number is 150, which indicates a 50% increase in prices from the base period.
Fisher's Index Number (149.95):
- Fisher's index number is calculated by taking the arithmetic mean of the Laspeyres and Paasche index numbers.
- In this case, the index number is 149.95, which is slightly lower than Bowley's index number, indicating a slight decrease in prices compared to the base period.
Paasche's Index Number (146.13):
- Paasche's index number is calculated by taking the ratio of the current period expenditure to the base period expenditure, using current period quantities and prices.
- The correct answer is (a) 146.13, which is lower than both Bowley's and Fisher's index numbers, indicating a decrease in prices compared to the base period.
Therefore, Paasche's index number of 146.13 suggests that prices have decreased compared to the base period, which is in line with the slight decrease indicated by Fisher's index number of 149.95.
Bowley's Index Number (150):
- Bowley's index number is calculated by taking the geometric mean of the prices of a fixed basket of goods in two different time periods.
- In this case, the index number is 150, which indicates a 50% increase in prices from the base period.
Fisher's Index Number (149.95):
- Fisher's index number is calculated by taking the arithmetic mean of the Laspeyres and Paasche index numbers.
- In this case, the index number is 149.95, which is slightly lower than Bowley's index number, indicating a slight decrease in prices compared to the base period.
Paasche's Index Number (146.13):
- Paasche's index number is calculated by taking the ratio of the current period expenditure to the base period expenditure, using current period quantities and prices.
- The correct answer is (a) 146.13, which is lower than both Bowley's and Fisher's index numbers, indicating a decrease in prices compared to the base period.
Therefore, Paasche's index number of 146.13 suggests that prices have decreased compared to the base period, which is in line with the slight decrease indicated by Fisher's index number of 149.95.
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Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number is (a) 146.13 (b) 154 (c) 148 (d) 156?
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Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number is (a) 146.13 (b) 154 (c) 148 (d) 156? 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 Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number is (a) 146.13 (b) 154 (c) 148 (d) 156? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number is (a) 146.13 (b) 154 (c) 148 (d) 156?.
Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number is (a) 146.13 (b) 154 (c) 148 (d) 156? 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 Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number is (a) 146.13 (b) 154 (c) 148 (d) 156? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number is (a) 146.13 (b) 154 (c) 148 (d) 156?.
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