CA Foundation Exam > CA Foundation Questions > Fisher’s index number is based ona)The ...
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Fisher’s index number is based on
- a)The Arithmetic mean of Laspeyre’s and Paasche’s index numbers.
- b)The Median of Laspeyre’s and Paasche’s index numbers.
- c)The Mode of Laspeyre’s and Paasche’s index numbers.
- d)None of these.
Correct answer is option 'D'. Can you explain this answer?
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Fisher’s index number is based ona)The Arithmetic mean of Laspey...
The geometric mean of Laspeyre's and Paasche's price indices is called Fisher's price Index. Fisher price index uses both current year and base year quantities as weight. This index corrects the positive bias inherent in the laspeyres index and the negative bias inherent in the paasche index.
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Fisher’s index number is based ona)The Arithmetic mean of Laspey...
Explanation:
Fishers index number is a weighted geometric mean of Laspeyres and Paasches index numbers. It is used to measure the changes in the price level of goods and services over a period of time.
The formula for calculating Fisher's index number is as follows:
Fisher's index number = √(Laspeyres index number × Paasches index number)
Here are some points to keep in mind about Fisher's index number:
- It is a more accurate measure of price changes than the Laspeyres or Paasches index numbers alone because it takes into account the quantity of goods and services consumed in a particular period.
- It is also known as the Ideal index number because it satisfies the Time Reversal test, which means that if we calculate the index number for two periods in reverse order, we will get the same result.
- Fisher's index number is widely used by economists and policymakers to track inflation and other economic indicators.
Conclusion:
To summarize, Fisher's index number is a weighted geometric mean of Laspeyres and Paasches index numbers, which is used to measure the changes in the price level of goods and services over a period of time. It is a more accurate measure of price changes because it takes into account the quantity of goods and services consumed in a particular period.
Fishers index number is a weighted geometric mean of Laspeyres and Paasches index numbers. It is used to measure the changes in the price level of goods and services over a period of time.
The formula for calculating Fisher's index number is as follows:
Fisher's index number = √(Laspeyres index number × Paasches index number)
Here are some points to keep in mind about Fisher's index number:
- It is a more accurate measure of price changes than the Laspeyres or Paasches index numbers alone because it takes into account the quantity of goods and services consumed in a particular period.
- It is also known as the Ideal index number because it satisfies the Time Reversal test, which means that if we calculate the index number for two periods in reverse order, we will get the same result.
- Fisher's index number is widely used by economists and policymakers to track inflation and other economic indicators.
Conclusion:
To summarize, Fisher's index number is a weighted geometric mean of Laspeyres and Paasches index numbers, which is used to measure the changes in the price level of goods and services over a period of time. It is a more accurate measure of price changes because it takes into account the quantity of goods and services consumed in a particular period.
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Fisher’s index number is based ona)The Arithmetic mean of Laspeyre’s and Paasche’s index numbers.b)The Median of Laspeyre’s and Paasche’s index numbers.c)The Mode of Laspeyre’s and Paasche’s index numbers.d)None of these.Correct answer is option 'D'. Can you explain this answer?
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Fisher’s index number is based ona)The Arithmetic mean of Laspeyre’s and Paasche’s index numbers.b)The Median of Laspeyre’s and Paasche’s index numbers.c)The Mode of Laspeyre’s and Paasche’s index numbers.d)None of these.Correct answer is option 'D'. Can you explain this answer? 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 Fisher’s index number is based ona)The Arithmetic mean of Laspeyre’s and Paasche’s index numbers.b)The Median of Laspeyre’s and Paasche’s index numbers.c)The Mode of Laspeyre’s and Paasche’s index numbers.d)None of these.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Fisher’s index number is based ona)The Arithmetic mean of Laspeyre’s and Paasche’s index numbers.b)The Median of Laspeyre’s and Paasche’s index numbers.c)The Mode of Laspeyre’s and Paasche’s index numbers.d)None of these.Correct answer is option 'D'. Can you explain this answer?.
Fisher’s index number is based ona)The Arithmetic mean of Laspeyre’s and Paasche’s index numbers.b)The Median of Laspeyre’s and Paasche’s index numbers.c)The Mode of Laspeyre’s and Paasche’s index numbers.d)None of these.Correct answer is option 'D'. Can you explain this answer? 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 Fisher’s index number is based ona)The Arithmetic mean of Laspeyre’s and Paasche’s index numbers.b)The Median of Laspeyre’s and Paasche’s index numbers.c)The Mode of Laspeyre’s and Paasche’s index numbers.d)None of these.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Fisher’s index number is based ona)The Arithmetic mean of Laspeyre’s and Paasche’s index numbers.b)The Median of Laspeyre’s and Paasche’s index numbers.c)The Mode of Laspeyre’s and Paasche’s index numbers.d)None of these.Correct answer is option 'D'. Can you explain this answer?.
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