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Using Fisher’s Ideal Formula, compute price index number for 1999 with 1996 as base year, given the following: Year Commodity: A Commodity: B Commodity: C Price (Rs.) Quantity (kg) Price (Rs.) - Business Mathematics and Statistics

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प्रश्न

Using Fisher’s Ideal Formula, compute price index number for 1999 with 1996 as base year, given the following:

Year Commodity: A Commodity: B Commodity: C
Price (Rs.) Quantity (kg) Price (Rs.) Quantity (kg) Price (Rs.) Quantity (kg)
1996 5 10 8 6 6 3
1999 4 12 7 7 5 4
सारिणी
योग
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उत्तर

Commodity 1996
(Base year)
1999
(Current year)
p0q0 p0q1 p1q0 p1q1
p0 q0 p1 q1
A 5 10 4 12 50 60 40 48
B 8 6 7 7 48 56 42 49
C 6 3 5 4 18 24 15 20
Total `sum"p"_0"q"_0` = 116 `sum"p"_0"q"_1` = 140 `sum"p"_1"q"_0` = 97 `sum"p"_1"q"_0` = 117

Fisher’s Index number 

`"P"_01^"F" = sqrt((sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx (sum"p"_1"q"_1)/(sum"p"_0"q"_1)) xx 100`

= `sqrt(97/116 xx 117/140) xx 100`

= `sqrt(11349/16240) xx 100`

= `sqrt(0.6988) xx 100`

= `0.8359 xx 100`

= 83.59

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अध्याय 9: Applied Statistics - Exercise 9.2 [पृष्ठ २२०]

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सामाचीर कलवी Business Mathematics and Statistics [English] Class 12 TN Board
अध्याय 9 Applied Statistics
Exercise 9.2 | Q 18 | पृष्ठ २२०

संबंधित प्रश्न

State with reasons whether you agree or disagree with the following statement:

Index numbers can be constructed without the base year.


Explain the features of index numbers.


State the uses of cost of Living Index Number


Calculate by a suitable method, the index number of price from the following data:

Commodity 2002 2012
Price Quantity Price Quantity
A 10 20 16 10
B 12 34 18 42
C 15 30 20 26

Using the following data, construct Fisher’s Ideal index and show how it satisfies Factor Reversal Test and Time Reversal Test?

Commodity Price in Rupees per unit Number of units
Basic year Current year Base year Current year
A 6 10 50 56
B 2 2 100 120
C 4 6 60 60
D 10 12 50 24
E 8 12 40 36

Calculate Fisher’s index number to the following data. Also show that it satisfies Time Reversal Test.

Commodity 2016 2017
Price (Rs.) Quantity (kg) Price (Rs.) Quantity (kg)
Food 40 12 65 14
Fuel 72 14 78 20
Clothing 36 10 36 15
Wheat 20 6 42 4
Others 46 8 52 6

Choose the correct alternative:

Most commonly used index number is:


Calculate the Laspeyre’s, Paasche’s and Fisher’s price index number for the following data. Interpret on the data.

Commodities Base Year Current Year
Price Quantity Price  Quantity
A 170 562 72 632
B 192 535 70 756
C 195 639 95 926
D 1987 128 92 255
E 1985 542 92 632
F 150 217 180 314
7 12.6 12.7 12.5 12.8
8 12.4 12.3 12.6 12.5
9 12.6 12.5 12.3 12.6
10 12.1 12.7 12.5 12.8

Assertion and reasoning question:

  • Assertion (A): The index number considers all factors.
  • Reasoning (R): The index number is based on samples.

Read the given passage and answer the questions:

Index Number is a technique of measuring changes in a variable or group of related variables with reference to time, geographical location and other characteristics.

Index Number is very useful for economists, farmers, traders, government, educationalists and trade union leaders for planning and implementing the plans according to their sector.

The scope of index number is not limited to only one subject but it extends to many subjects such as Economics, Educational science, Psychology, History, Sociology, Geography etc.

While framing index number its objective must be determined. To attain the objective the information is collected in various ways and this information is used for comparing two different time periods. For this purpose, the base year’s index is assumed as 100 and accordingly the value of the current year is calculated.

Laspeyre, Paasche and Fisher have suggested different methods for constructing index numbers.

  1. Explain the meaning of Index Number.
  2. To whom the Index Number is useful?
  3. Express your opinion about the given passage.

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