Compute the weighted aggregative price index number for year 2018 with year 2012 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 | 10 | 10 | 5 | 25 |
| B | 35 | 4 | 35 | 10 |
| C | 30 | 3 | 15 | 15 |
| D | 10 | 25 | 20 | 20 |
| E | 40 | 3 | 40 | 5 |
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : 104.65
| Commodity | $p_0$ | $p_1$ | $q_0$ | $q_1$ | $p_0q_0$ | $p_0q_1$ | $p_1q_0$ | $p_1q_1$ |
| A | 10 | 5 | 10 | 25 | 100 | 250 | 50 | 125 |
| B | 35 | 35 | 4 | 10 | 140 | 350 | 140 | 350 |
| C | 30 | 15 | 3 | 15 | 90 | 450 | 45 | 225 |
| D | 10 | 20 | 25 | 20 | 250 | 200 | 500 | 400 |
| E | 40 | 40 | 3 | 5 | 120 | 200 | 120 | 200 |
| Total | 700 | 1450 | 855 | 1300 |
Fisher's Ideal index number$=\sqrt{\frac{∑p_1q_0}{∑p_0q_0}×\frac{∑p_1q_1}{∑p_0q_1}}×100$
$=\sqrt{\frac{855}{700}×\frac{1300}{1450}}×100=104.65$