Q. Compute the index numbers of Fisher’s Ideal type for the following data. Commodity Prices Quantities 2000 (base) 2004 2000 2004 A 5 7 49 70 B 7 5 28 27 C 9 10 29 35 D 4 9 42 50 E 10 3 25 16
Q. Compute the index numbers of Fisher’s Ideal type for the following data.
|
Commodity |
Prices |
Quantities |
||
|
2000 (base) |
2004 |
2000 |
2004 |
|
|
A |
5 |
7 |
49 |
70 |
|
B |
7 |
5 |
28 |
27 |
|
C |
9 |
10 |
29 |
35 |
|
D |
4 |
9 |
42 |
50 |
|
E |
10 |
3 |
25 |
16 |
Index Numbers: index numbers are numerical figures which indicate the relative position in respect of price, or quantity or value of a group of articles at certain periods of time as compared with another period, called base period.
When the comparison is in respect of price, they are called Price Index Numbers; Similarly we have Quantity Index Numbers and Value Index Numbers.
Index number for the best period is always taken as 100. Index number for any other period, called current period, shows the overall level of price (or quantity or value) of the group of articles as a percentage of that in the base period.
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