Categories: Descriptive statistics

Fisher Ideal Price Index

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class="quads-location quads-ad1" id="quads-ad1" style="float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;</div>&NewLine;<p align="justify">The geometric mean of Laspeyre’s and Paasche’s price indices is called Fisher’s price Index&period; Fisher price index uses both current year and base year quantities as weight&period; This index corrects the positive bias inherent in the laspeyres index and the negative bias inherent in the paasche index&period; Fisher’s price index is also a weighted aggregative price index because it is an average (G&period;M) of two weighted aggregative indices&period; The computational formula for the fisher ideal price index is&colon;</p>&NewLine;<p align="justify">&&num;160&semi;</p>&NewLine;<p align="justify"><a href="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image172&period;png"><img title="image" style="border-right&colon; 0px&semi; border-top&colon; 0px&semi; display&colon; inline&semi; border-left&colon; 0px&semi; border-bottom&colon; 0px" height="58" alt="image" src="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image&lowbar;thumb172&period;png" width="200" border="0" /></a> </p>&NewLine;<p align="justify">&&num;160&semi;</p>&NewLine;<p align="justify"><strong>Problem&colon;</strong> Construct Fisher’s price index for the data given below&colon; (Base = 2004)&period; Also show that fisher’s index is the geometric mean of laspeyre and paache indices&period; </p>&NewLine;<p align="justify">&&num;160&semi;</p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class="quads-location quads-ad2" id="quads-ad2" style="float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;</div>&NewLine;&NewLine;<p align="justify"><a href="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image173&period;png"><img title="image" style="border-right&colon; 0px&semi; border-top&colon; 0px&semi; display&colon; inline&semi; border-left&colon; 0px&semi; border-bottom&colon; 0px" height="173" alt="image" src="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image&lowbar;thumb173&period;png" width="500" border="0" /></a> </p>&NewLine;<p align="justify">&&num;160&semi;</p>&NewLine;<p align="justify"><strong>Solution&colon;</strong></p>&NewLine;<p align="justify">&&num;160&semi;</p>&NewLine;<p align="justify"><a href="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image174&period;png"><img title="image" style="border-right&colon; 0px&semi; border-top&colon; 0px&semi; display&colon; inline&semi; border-left&colon; 0px&semi; border-bottom&colon; 0px" height="158" alt="image" src="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image&lowbar;thumb174&period;png" width="500" border="0" /></a> </p>&NewLine;<p align="justify">&&num;160&semi;</p>&NewLine;<p align="justify"><a href="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image175&period;png"><img title="image" style="border-right&colon; 0px&semi; border-top&colon; 0px&semi; display&colon; inline&semi; border-left&colon; 0px&semi; border-bottom&colon; 0px" height="240" alt="image" src="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image&lowbar;thumb175&period;png" width="216" border="0" /></a> </p>&NewLine;<p align="justify">&&num;160&semi;</p>&NewLine;<h3 align="justify">Fisher’s index is the geometric mean of laspeyre and paache indices</h3>&NewLine;<p align="justify">&NewLine;<p align="justify">To check that Fisher’s index is the geometric mean of Laspeyre and Paache indices, we have</p>&NewLine;<p align="justify">&&num;160&semi;</p>&NewLine;<p> <a href="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image176&period;png"><img title="image" style="border-right&colon; 0px&semi; border-top&colon; 0px&semi; display&colon; inline&semi; border-left&colon; 0px&semi; border-bottom&colon; 0px" height="27" alt="image" src="http&colon;//mba-lectures&period;com/wp-content/uploads/2010/06/image&lowbar;thumb176&period;png" width="81" border="0" /></a> &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class="quads-location quads-ad3" id="quads-ad3" style="float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;</div>&NewLine;&NewLine;

Marshall Edgeworth Price Index

June 20, 2010

In "Descriptive statistics"

Weighted aggregate price index

June 18, 2010

In "Descriptive statistics"

How to Calculate an Index Number

June 22, 2010

In "Descriptive statistics"

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View Comments

barani says:

November 16, 2010 at 2:29 am

good i am barani now woking in mba lecturer
Dr Mayuri Doshi says:

November 30, 2010 at 5:32 am

I have taken MBA course from Sikkim Manipal University.This formula is not given in the book , but is asked in the assignments.I could answer with the help of the formula given.
Majune Kraido Socrates says:

April 1, 2011 at 9:14 am

The site is very helpful.Thanks
james says:

April 1, 2011 at 12:19 pm

thank u so much.am a student in the university of nairobi.am taking a degree in economics and statistics.
ms4days says:

July 21, 2011 at 5:55 pm

So why is this a reasonable or useful way to describe production (as in the Federal Production Index)?
Tozer Mwalwanda says:

October 21, 2011 at 2:06 pm

Thanks. Easy to understand
Navdeep Singh says:

November 22, 2011 at 5:10 pm

it helped me!!!!! very well
zainnier says:

December 13, 2011 at 1:27 pm

yess very helpfull to me too
SIDWAKA says:

July 9, 2012 at 6:53 am

a very comprehensive explanation! thanks
Mr. Jasmin shah says:

November 3, 2012 at 10:37 am

I am doing Distance Education MBA from sikkim Manipal university. This question has been asked in the assignment but not given in the text book. Thanks for the guidence....