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Index Numbers — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIndex Numbers3 Marks
Question
Fisher's Index Number is considered as an ideal method. Why?
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Answer

Fisher's method is considered as an ideal method because:
  1. It is based on variable weights.
  2. It takes into consideration the price and quantities of both current year and base year.
  3. It is based on geometric mean which is regarded online as the best mean for calculating index number.

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