Question

Calculate Fisher Price Index Number.

• A. $220.00$
• B. $216.30$
• C. $219.12$
• D. $221.98$

Answer 1

Answer: (C)

$219.12$

ITEM	Base Year $P_0$	Base Year $Q_0$	Current Year $P_1$	Current Year $Q_1$	$P_0{Q}_0$	$P_1{Q}_0$	$P_0{Q}_1$	$P_1{Q}_1$
$A$	$4$	$20$	$10$	$15$	$80$	$200$	$60$	$150$
$B$	$8$	$4$	$16$	$5$	$32$	$64$	$40$	$80$
$C$	$2$	$10$	$4$	$12$	$20$	$40$	$24$	$48$
$D$	$10$	$5$	$20$	$6$	$50$	$100$	$60$	$120$
					$182$	$404$	$184$	$398$

Laspeyres Price Index Number
$P_{01}^L=\frac{\sum P_1{Q}_0}{\sum P_0{Q}_0}\times 100=\frac{404}{182}\times 100=221.98$
Paasche Price Index Number
$P_{01}^P=\frac{\sum P_1{Q}_1}{\sum P_0{Q}_1}\times 100=\frac{398}{184}\times 100=216.30$
Fisher Price Index Number
$P_{01}^F=\sqrt{\sum P_{01}^L\times P_{01}^P}=\sqrt{(221.98\times 216.3)}=219.12$.