Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

Using the following data, compute Fisher's Ideal Price Index Numbers for the current year:

Commodity

Base Year

Current Year

Price

Qty. 

Price

 Qty.

(₹)

(Kg.)

(₹)

(Kg.)

A

12

20

15

25

B

10

08

16

10

C

15

02

12

01

D

60

01

65

01

E

03

02

10

01

Options:

129.60

133.33

117.40

120.10

Correct Answer:

129.60

Explanation:

The correct answer is Option (1) → 129.60

Commodity

$p_0$​

$q_0$​

$p_1$​

$q_1$​

$p_1​q_0$​

$p_0​q_0$​

$p_1​q_1$​

$p_0​q_1$​

A

12

20

15

25

300

240

375

300

B

10

08

16

10

128

80

160

100

C

15

02

12

01

24

30

12

15

D

60

01

65

01

65

60

65

60

E

03

02

10

01

20

06

10

03

Total

 

 

 

 

$\sum p_1q_0 = 537$

$\sum p_0q_0 = 416$

$\sum p_1q_1 = 622$

$\sum p_0q_1 = 478$

Fisher's Price Index Number ($P_{01}$):

$P_{01} = \sqrt{\frac{\sum p_1q_0}{\sum p_0q_0} \times \frac{\sum p_1q_1}{\sum p_0q_1}} \times 100$

$P_{01} = \sqrt{\frac{537}{416} \times \frac{622}{478}} \times 100$

$P_{01} = \sqrt{\frac{334014}{198848}} \times 100 \approx 129.60$