Vidyalelo
Commerce · Q18

Economics

Graduate and Post Graduate · Commerce · question 18

Q18

Fisher's ideal index number is

A.
Arithmetic mean of Laspeyre's and Paasche's index
B.
Harmonic mean of Laspeyre's and Paasche's index
C.
Geometric mean of Laspeyre's and Paasche's index
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Fisher's Ideal volume index is the geometric mean of the Laspeyres and Paasche volume indices. A measure of change in volume from period to period. It is calculated as the geometric mean of a chain Paasche volume index and a chain Laspeyres volume index.