PRC-2 · Chapter 9 · Question 13 of 60
If the Laspeyres index for a dataset is 120 and the Paasche index is 125, what is the approximate Fisher's Ideal Index?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 122.47
Explanation
Fisher's index is the geometric mean of the Laspeyres and Paasche indices. √(120 * 125) = √(15000) = approximately 122.47.
More Indices MCQs
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- Q16What is a defining characteristic of the Laspeyres price index regarding its denominator?
- Q17Why is the Laspeyres price index typically used more frequently in practical economic applications than the Paasche price index?
- Q18Which of the following statements accurately describes a chain index series?
- Q19The Consumer Price Index (CPI) is fundamentally designed to mathematically measure: