Question

Construct an index number for the year 2017, taking 2004 as base year by any method you deem ideal:

Year	Good I		Good II		Good III
	Price	Quantity	Price	Quantity	Price	Quantity
2004 2017	5 4	10 12	8 7	6 7	6 5	3 4

Answer 1

	P0	q0	P1	q1	P0q0	P1q1	P0q1	P1q0
I II III	5 8 6	10 6 3	4 7 5	12 7 4	50 48 18	48 49 20	60 56 24	40 42 15
					$\Sigma P_0{q}_0=116$	$\Sigma P_1{q}_1=117$	$\Sigma P_0{q}_1=140$	$\Sigma P_1{q}_0=97$

Fisher's Method

$$\begin{gathered} P_{01}=\sqrt{\frac{\Sigma P_1{q}_0}{\Sigma P_0{q}_0}\times \frac{\Sigma P_1{q}_1}{\Sigma P_0{q}_0}}\times 100 \\ or,P_{01}=\sqrt{\frac{97}{116}\times \frac{117}{140}}\times 100=83.59 \end{gathered}$$