Index NumbersMCQPYQ June 22Question 3802 of 197
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Geometric mean method used in which index number to find it out

Options

ALaspeyre's
BPaasche's
CFishers index number
DNone of these
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Correct Answer

Option cFishers index number

All Options:

  • ALaspeyre's
  • BPaasche's
  • CFishers index number
  • DNone of these

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Detailed Solution & Explanation

Fisher's Index Number is computed by taking the **Geometric Mean** of Laspeyres' and Paasche's index numbers: P01F=P01L×P01PP_{01}^F = \sqrt{P_{01}^L \times P_{01}^P} Thus, the geometric mean method is used in constructing Fisher's index number. 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

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