Compute the weighted aggregative price index number for year 2008 with year 2000 as base year using Fisher's ideal index number from the following data.
Commodity |
Prices (₹) | Quantities | ||
| In 2000 | In 2008 | In 2000 | In 2008 | |
| A | 38 | 35 | 6 | 7 |
| B | 12 | 18 | 7 | 10 |
| C | 10 | 15 | 10 | 15 |
| D | 25 | 30 | 12 | 16 |
| E | 300 | 33 | 8 | 10 |
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : 117.36
Commodity |
Price (₹) |
Quantity |
$p_0q_1$ | $p_0q_1$ | $p_1q_0$ | $p_1q_1$ | ||
| $p_0$ | $p_1$ | $q_0$ | $q_1$ | |||||
| A | 38 | 35 | 6 | 7 | 228 | 266 | 210 | 245 |
| B | 12 | 18 | 7 | 10 | 84 | 120 | 126 | 180 |
| C | 10 | 15 | 10 | 15 | 100 | 150 | 150 | 225 |
| D | 25 | 30 | 18 | 16 | 300 | 400 | 360 | 480 |
| E | 30 | 33 | 8 | 10 | 240 | 300 | 264 | 330 |
| Total | 952 | 1236 | 1110 | 1460 | ||||
Fisher's ideal Index number $=\sqrt{\frac{∑p_1q_0}{∑p_0q_0}×\frac{∑p_1q_1}{∑p_0q_1}}×100$
$=\sqrt{\frac{1110}{952}×\frac{1460}{1236}}×100$
$= 117.36$