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Statistics question from FAA exam, 2024 by JKSSB

An economist estimated that a commodity Y had a price index of 10, calculated for 1993 with a base year of 1990, and a quantity index of 0.5 when calculated for 1990 with a base year of 1993. What is the Fisher Ideal Value Index for 1993 with the base year taken to be 1990?

Last updated May 15, 2026
Correct Answer: Option A — 5
Laspeyres Index: Uses base year quantities.Paasche Index: Uses current year quantities.Fisher Index: $\sqrt{L \times P}$. It is called "Ideal" because it satisfies both the Time Reversal Test and the Factor Reversal Test.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.

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JKSSB FAA 2024

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Exam JKSSB
Recruitment FAA
Year 2024
Subject Statistics
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