If Paasche's index number is 160 and Laspeyre's index number is 250, then Fisher's index number is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) - 200
$\text{Fisher's index} = \sqrt{(\text{Laspeyres})(\text{Paasche})}$
$= \sqrt{250 \times 160}$
$= \sqrt{40000}$
$= 200$
The Fisher's index number is $200$.