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Fisher index no

CPT 756 views 4 replies

fishers ideal index:

comm               base yr                           current yr

                        price      quant                 price          quantity

A                       4             3                       6                   2

B                         5            4                      0                    4

C                         7           2                       9                   2

D                        2            3                       1                     5

 

Kindly provide the solution for tha above, i tried bt my answer nt matching with the answer given in module.  

 

Replies (4)

Laspeyer’s index =( PnQ0)/ ( P0Q0) *100 =  (6*3+0*4 + 9*2 + 1*3) /(4*3 +5*4+7*2+2*3 ) = (39)/(52)*100 = ¾ *100 =75

Paasche’s index = ( PnQn)/ ( PnQn) *100= (6*2+0*4+9*2+1*5)/(4*2+5*4+7*2+2*5) = (35)/(52) = 3500/52 = 67.307

Fisher’s Index is the geometric mean of laspeyer’s and paashe’s index. Thus Fisher’s Index is ((3/4)*(35/52)) *100 = 71.05

L = EP1Q0/EP0Q0 * 100 = 18+10+18+3/12+20+14+6 * 100 = 39/52*100 = 75

P = EP1Q1/EP0Q1 * 100 = 12+0+18+5 /8+20+14+10 *100 = 35/52*100 = 67.31

F = ROOT L*P=ROOT75*67.31=71.05

even i gt the same answer bt the answer which is provided in module is 117.3 so confused..

 

The module that was given to us many errors so you should not be concerned about them getting an answer wrong


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