CA Foundation P3 · Chapter 18 · Question 4 of 9
Laspeyres' price index is 125 and Paasche's price index is 120. Fisher's ideal index is (to two decimals):
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 122.47
Explanation
Fisher's index is the geometric mean of Laspeyres' and Paasche's indices: √(125 x 120) = √15,000 = 122.47. 122.50 is the arithmetic mean (Bowley's index), not Fisher's.
More Index Numbers MCQs
- Q6The link relatives of prices for three successive years (each on the previous year as 100) are 110, 105 and 120. Taking the year before…
- Q7On an old base, the index numbers for years X and Y are 150 and 180. If the base is shifted to year X, the new index for year Y is:
- Q8A worker's money wage is ₹30,000 per month and the consumer price index (base = 100) is 150. His real wage in base-year prices is:
- Q9The price relatives of three items are 120, 150 and 110, with weights 5, 2 and 3 respectively. The weighted index of price relatives is:
- Q1The sum of base-year prices of a group of commodities is ₹250 and the sum of current-year prices is ₹300. The simple aggregative price…