Calculate Fisher’s price index number for the given data.
|
Commodity |
Price |
Quantity |
||
|
2008 ($p_0$) |
2012 ($p_1$) |
2008 ($Q_0$) |
2012 ($Q_1$) |
|
|
Rice |
10 |
13 |
4 |
6 |
|
Wheat |
15 |
18 |
7 |
8 |
|
Rent |
25 |
29 |
5 |
9 |
|
Fuel |
11 |
14 |
8 |
10 |
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 121.2
|
Commodity |
Price |
Price |
Quantity |
Quantity |
$p_0Q_0$ |
$p_0Q_1$ |
$p_1Q_0$ |
$p_1Q_1$ |
|
|
2008 ($p_0$) |
2012 ($p_1$) |
2008 ($p_0$) |
2012 ($p_1$) |
|
|
|
|
|
Rice |
10 |
13 |
4 |
6 |
40 |
60 |
52 |
78 |
|
Wheat |
15 |
18 |
7 |
8 |
105 |
120 |
126 |
144 |
|
Rent |
25 |
29 |
5 |
9 |
125 |
225 |
145 |
261 |
|
Fuel |
11 |
14 |
8 |
10 |
88 |
110 |
112 |
140 |
|
|
|
|
Total |
|
359 |
515 |
435 |
623 |
Fisher's price index number = $\sqrt{\frac{∑p_1Q_0}{∑p_0Q_0}×\frac{∑p_1Q_1}{∑p_0Q_1}}×100$
$=\sqrt{\frac{435}{359}×\frac{623}{515}}×100=121.2$