Fisher's index number is the:
- AArithmetic Mean of Laspeyres and Paasche Index Numbers
- BGeometric Mean of Laspeyres and Paasche Index Numbers
- CDifference between Laspeyres and Paasche Index Numbers
- DNone of the above
Solution & Step-by-step Explanation
Fisher's Ideal Index Number is defined as the Geometric Mean (G.M.) of the Laspeyres index () and the Paasche index ():
It is called "ideal" because it satisfies both the Time Reversal Test and the Factor Reversal Test.
It is called "ideal" because it satisfies both the Time Reversal Test and the Factor Reversal Test.