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Fisher's ideal index is the
AGeometric mean of Laspeyres and Paasche
BArithmetic mean of Laspeyres and Paasche
CSum of Laspeyres and Paasche
DDifference of Laspeyres and Paasche
Answer & Solution
Correct answer: A. Geometric mean of Laspeyres and Paasche
1. Fisher's Ideal Index = √(Laspeyres × Paasche).
2. It is geometric mean of the two basic indices.
3. Called 'ideal' because it satisfies both the Time Reversal and Factor Reversal tests.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 3 "Index Numbers", §3.3 ¶§3.3_
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