If the Laspeyres index is 140.78 and the Paasche index is 98.01, what is Fisher's ideal index?
A) 117.144
B) 117.46
C) 137.22
D) 173.14

Question

Quizplus · Accepted Answer

Fisher's ideal index is the geometric mean of the Laspeyres and Paasche indexes, calculated as (Laspeyres index * Paasche index)^0.5. Plugging in the given values, we get (140.78 * 98.01)^0.5 = 117.46. Therefore, the best answer choice is B.

If the Laspeyres Index Is 140