Index NumbersMCQPYQ Nov. 18Question 3875 of 197
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If Laspeyres's Index Number is 250 and Paasche's Index Number is 160, then Fisher's Index number is

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option c — $200$

All Options:

  • A$20,000$
  • B$25/16$
  • C$200$
  • D$16/25$

Detailed Solution & Explanation

We are given: - Laspeyres' Index (P01L\displaystyle P_{01}^L) = $250$ - Paasche's Index (P01P\displaystyle P_{01}^P) = $160$ Fisher's Ideal Index (P01F\displaystyle P_{01}^F) is the geometric mean of Laspeyres' and Paasche's indices: P01F=P01L×P01P=250×160=40000=200P_{01}^F = \displaystyle \sqrt{P_{01}^L \times P_{01}^P} = \sqrt{250 ×\displaystyle \times 160} = 40000=200\displaystyle \sqrt{40000} = 200 Hence, **Option C** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

Index Number

A statistical device for measuring changes in the magnitude of a group of related variables (like prices or production) over time.

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If ∑P0q0=240\displaystyle ∑\displaystyle \sum P_0q_0 = 240, ∑P1q0=480\displaystyle ∑\displaystyle \sum P_1q_0 = 480, ∑P0q1=600\displaystyle ∑\displaystyle \sum P_0q_1 = 600 and ∑P1q1=192\displaystyle ∑\displaystyle \sum P_1q_1 = 192, then Laspeyres's Index Number is

If ΣPnqn=249\displaystyle Σ\displaystyle \Sigma P_n q_n = 249, ΣP0q0=150\displaystyle Σ\displaystyle \Sigma P_0 q_0 = 150, ΣPnq0=145\displaystyle Σ\displaystyle \Sigma P_n q_0 = 145 and Paasche's Index Number = 150, then Fisher's Ideal Price Index Number is

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