If Laspeyre's index number =160, Paasche's index number =90. then Fisher's ideal index number is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 120
Laspeyre's index, L = 160
Paasche's index, P = 90
Fisher's index = $\sqrt{L×P}$
$=\sqrt{160×90}$
$=\sqrt{14400}=120$