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    Barani Dharan
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    This document contains information about calculating Fisher's ideal index number using a sample data set with prices and quantities for 4 commodities (A, B, C, D) in 1990 and 1998. It shows the calculations for the time reversal test and factor reversal test. The time reversal test compares the index calculated from the original data to the index calculated reversing the years. The factor reversal test compares the index to the index calculated by reversing prices and quantities. Both tests are satisfied, showing Fisher's ideal index meets the tests.

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    problems and solution for index number

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    Statistics - index number

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    This document contains information about calculating Fisher's ideal index number using a sample data set with prices and quantities for 4 commodities (A, B, C, D) in 1990 and 1998. It shows the calculations for the time reversal test and factor reversal test. The time reversal test compares the index calculated from the original data to the index calculated reversing the years. The factor reversal test compares the index to the index calculated by reversing prices and quantities. Both tests are satisfied, showing Fisher's ideal index meets the tests.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    186 views10 pages

    Statistics - Index Number

    Uploaded by

    Barani Dharan
    This document contains information about calculating Fisher's ideal index number using a sample data set with prices and quantities for 4 commodities (A, B, C, D) in 1990 and 1998. It shows the calculations for the time reversal test and factor reversal test. The time reversal test compares the index calculated from the original data to the index calculated reversing the years. The factor reversal test compares the index to the index calculated by reversing prices and quantities. Both tests are satisfied, showing Fisher's ideal index meets the tests.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 10

    STATISTICS for

    B.com., (INDEX’01)

    SLIDES PREPARED
    By
    K.BARANIDHARAN.M.com.,M.B.A.,M.Phil.,Ph.D.
    IDHAYA COLLEGE FOR WOMEN
    BHARATHIDASAN UNIVERSITY
    TAMILN AUD

    K. 12/08/2021
    BARANIDHARAN 4-1
    baranibarani50@yahoo.com
    dharanbarani21@gmail.com

    12/08/2021 K. BARANIDHARAN 2
    Index number

    Types : Price, Wholesale


    Price, Retail Price, Quantity,
    Quality, Cost of Living,
    Special purpose.
    Meaning & Definition
    • The statistical device which measures
    related variables and provides
    representative figures a s regards to
    combined changes in the variables is
    called Index Number
    • “index numbers are a series of numbers
    by which changes in the magnitudes of
    a pheneomenon are measured from
    time, or from place to place” –Secrist
    12/08/2021 K. BARANIDHARAN 5
    1)Calculate the Fisher’s ideal index satisfies
    both the time reversal and factor reversal test

    commodities 1990 1998

    price expenditure price expenditure

    A 10 12 12 144

    B 5 40 6 54

    C 20 60 25 100

    D 8 80 8 72
    Com.di p0 q0 p1 q1 p1q0 p0q0 p1q1 p0q1

    A 10 12 12 12 144 120 144 120

    B 5 8 6 9 48 40 54 45

    C 20 3 25 4 75 60 100 80

    D 8 10 8 9 80 80 72 72

    p1q0 p0q0 p1q1 p0q1


    =347 =300 =370 =317

    12/08/2021 K. BARANIDHARAN 7
    Time Reversal Test

    = 1.

    Hence Time Reversal Test is Satisfied


    12/08/2021 K. BARANIDHARAN 8
    Factor Reversal Test
    •
    • P01 x q01

    Hence Factor Reversal Test is satisfied

    12/08/2021 K. BARANIDHARAN 9
    THANK YOU

    12/08/2021 K. BARANIDHARAN 10

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