Calculate the price index number of a group of four commodities by using (a) Laspeyre's formula (b) Fisher's formula and (c) Paasche's formula: Base…
BBS Business Statistics · 2083 · Solved Question with Answer
Calculate the price index number of a group of four commodities by using (a) Laspeyre's formula (b) Fisher's formula and (c) Paasche's formula:
| Base year | Current year | |||
| Commodity | Price/unit | Expenditure | price/ unite | Expenditure |
| A | 2 | 40 | 5 | 75 |
| B | 4 | 16 | 8 | 40 |
| C | 1 | 10 | 2 | 24 |
| C | 5 | 25 | 10 | 60 |
Also, examine time reversal test and factor reversal test are satisfied on Fisher's index number.