State the 'factor reversal test'. Show that Fisher's method for constructing index numbers satisfies it. The price index of cosmetics was 10 in 2001 with base as 1995 and 120 in 2002 with 2001 as base. It further increased by 30% in 2003 in relation to the price index of 2002 and decreased by 10% in 2004 as compared to its level in 2003. Find the index for 2004 with 195 as base.
State the 'factor reversal test'. Show that Fisher's method for constructing index numbers satisfies it. The price index of cosmetics was 10 in 2001 with base as 1995 and 120 in 2002 with 2001 as base. It further increased by 30% in 2003 in relation to the price index of 2002 and decreased by 10% in 2004 as compared to its level in 2003. Find the index for 2004 with 195 as base.
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 28EQ
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