Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next. What is Fisher's ideal index?
A) 107.5
B) 102.7
C) 112.8
D) 103.2

Question

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next.  What is Fisher's ideal index?
A) 107.5 
B) 102.7 
C) 112.8 
D) 103.2

Quizplus · Accepted Answer

Fisher's ideal index is calculated using the formula, (2xy / (x + y)) * 100, where x represents the quantity or price in the base period and y represents the quantity or price in the comparison period. Using the data provided, we can calculate the Fisher's ideal index for each vegetable and then find the average. The average Fisher's ideal index for all the vegetables is 102.7, which is closest to option B. Therefore, the best choice is B.

Data for Selected Vegetables Purchased at Wholesale Prices for 1995