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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

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प्रश्न

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
तक्ता
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उत्तर

Commodity 2016
(Base year)
2017
(Current year)
p0q0 p0q1 p1q0 p1q1
p0 q0 p1 q1
Food 40 12 65 14 480 560 780 910
Fuel 72 14 78 20 1008 1440 1092 1560
Clothing 36 10 36 15 360 540 60 540
Wheat 20 6 42 4 120 80 252 168
Others 46 8 52 6 68 276 416 312
Total `sum"p"_0"q"_0` = 2336 `sum"p"_0"q"_1` =2896 `sum"p"_1"q"_0` = 2900 `sum"p"_1"q"_1` = 3490

Fisher’s Price Index Number

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

= `sqrt((2900 xx 3490)/(2336 xx 2896)) xx 100`

= `sqrt((10121000)/(6765056)) xx 100`

= `sqrt(1.4961) xx 100`

= `1.2232 xx 100`

= 122.32

Time Reserved Test: P01 × P10 = 1

= `sqrt((sum"p"_1"q"_0 xx sum"p"_1"q"_1 xx sum"q"_1"p"_0 xx sum"q"_0"p"_0)/(sum"p"_0"q"_0 xx sum"p"_0"q"_1 xx sum"p"_1"q"_1 xx sum"p"_0"p"_1))`

= `sqrt((2900 xx 3490 xx 2896 xx 2336)/(2336 xx 2896 xx 3490 xx 2900)`

= 1

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

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सामाचीर कलवी Business Mathematics and Statistics [English] Class 12 TN Board
पाठ 9 Applied Statistics
Exercise 9.2 | Q 19 | पृष्ठ २२०

संबंधित प्रश्‍न

______ : Base year prices :: P1 : Current year prices.


Device that measures changes in an economic variable or a group of variables over a period of time –


Assertion (A): Index numbers are statistical devices.

Reasoning (R): Index numbers measure only changes in the price level over a period of time.


Define true value ratio


Discuss about Cost of Living Index Number


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 the cost of living index by aggregate expenditure method:

Commodity Weight
2010
Price (Rs.)
2010 2015
P 80 22 25
Q 30 30 45
R 25 42 50
S 40 25 35
T 50 36 52

Choose the correct alternative:

Laspeyre’s index = 110, Paasche’s index = 108, then Fisher’s Ideal index is equal to:


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.

Find the odd word out:

Features of Index Number:


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