PRC-2 · Chapter 9 · Question 25 of 60
If the calculated value of Fisher's Ideal Index is 144, and the Laspeyres index is 140, which formula structure is being utilized to combine them?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Geometric Mean of Laspeyres and Paasche
Explanation
Fisher's Ideal Index is universally defined in statistics as the strict geometric mean (the square root of the product) of the Laspeyres and Paasche indices.
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