BS-2 UNIT-2 Problem-2| Degree 4th sem business statistics-2 unit-2 time & factor reversal test💯

Added: 2026-05-12

[00:00:00]Hello dear students, welcome back to our YouTube channel Learn with Sahira.

[00:00:04]Students, in our previous video we have seen complete and clear explanation of unit number two index numbers from the subject business statistics 2 which is for degree fourth semester BCOM students. While I was explaining you index numbers in that video, I have said you that maximum time you will be finding those type of questions only like in order to find Laspius method, Pascious method, BI or Dish method, Marshall Edgeword method or Fisher's ideal index. Paka question you will be finding in the question paper but sometimes in rare cases you will be finding this type of question as well.

[00:00:41]Like in case if you find this type of question in your question paper, you should not leave and come definitely you need to attempt it and you need to score full marks from that question as well.

[00:00:52]That's the reason I'm explaining you this question as well in this video.

[00:00:56]Okay. Sometimes they might ask you uh like to conduct Fisher's ideal index numbers and test whether it satisfies time reversal test and factor reversal test. In case if you find this type of question how you have to solve it, I'm going to clearly explain in this video.

[00:01:15]So definitely watch the video till the very end. And if you're new to our YouTube channel Learn with Sahira, subscribe it for more exam preparation videos. And guys, if you need damn sure important question and answers notes for all subjects and languages of degree fourth semester, then message me on my Instagram. My Instagram ID is learn with Sahara. Link is also available in this video description. Just message me want notes along with your group and semester. I will be giving you the access to all the notes. But remember these are paid notes. There is a small payment for the notes. But believe me, you are going to see excellent results with these notes. Only the students who want the note should text me. Okay? And if you want to watch all explanation videos of this subject, do visit our playlist. Playlist is BCOM semester for business statistics 2. You will be finding all unit explanation videos there. That playlist link is also available in this video description. Do check it out. Without getting late, let us get started. So guys here we need to conduct Fisher's ideal index number and also test time reversal and factor reversal test. This is the question in our previous video we have already seen what is base year, what is current year and what are this quantity price. But let me say you again base year quantity will be Q0. Price will be P 0. Current year quantity will be Q1.

[00:02:33]Price will be P1. Right? Whatever the values they have given in the question, you need to substitute here in the table or you need to just take down that values here in your solution. This is the solution. Okay, let me mention commodity as it is. Whatever they have given and then I took P 0, Q0, P1, Q1.

[00:02:52]What is P 0? It is price of base year.

[00:02:55]Whatever they have given just note it down. 11 8 6 7 Q0 21 26 26 again then we have 16. Then P1 price of current year it is 13 6 10 and 5. Then Q1 is quantity of current year 27 33 21 26. Simple as simple as that. We are done till here.

[00:03:25]Okay. First you have to draw the table and whatever the values they have given just note it down. After that they are asking us to conduct Fisher's ideal index number. So how we will be doing that. Fisher's ideal index number formula is this. Okay. Definitely you have to remember this formula. Then only you will be able to do it. Okay. In our previous video I have already said you the formulas. Yeah. So this is the formula. Whatever the values they have given we need to just substitute in this formula to get the answer. But here it is P1 Q0 P 0 Q0 P1 Q1 P 0 Q1. But do we have any values here named like uh P1 Q0? No, we don't have those values right. So what we need to do? We need to find out them. How we need to find out them? First it is P1 Q0. So let us just take P1 Q0. Just find these values. How to find these values? What is the value of P1? It is 13. 13 into 21. You have to do P1 Q0. P1 into Q0 you have to do. You will get it. 13 into 21 it is 273. So like that you have to do then 6 into 26.

[00:04:44]6 into 26 you will be getting 156. Like that you have to find the values. It will be 260. It will be 80. Done. Now you have to add all these values in this way. 273 + 156 + 260 + 80. Whatever the value you are getting that is nothing but P1 Q0. Okay. Summation or sigma P1 Q0 is 769. It is 769. After P1 Q0 what it is? It is P 0 q0. So let us find P 0 Q0. How to find P 0 Q0? P 0 into Q0. 11 into 21. It is 231. Like that you have to find the values. It will be 231. It will be 28. It will be 156. It will be 112. Now just add all these values.

[00:05:44]Okay. 231 + 208 + 156 + 112 it is 707.

[00:05:52]So this is 707. I'm just writing roughly but you have to clearly mention like uh is it blur?

[00:06:01]Okay like this you have to mention sigma p 0 q0 is equals to this much like that.

[00:06:08]After p 0 q0 what it is guys? It is p1 q1. So just find P1 Q1. How to find P1 Q1? Now what is P1? It is 13. 13 into 27. 13 into 27 it is 351. Like that you have to find for remaining commodities as well it is 80. If you add all of them it will be 839. Okay. To just save our time I'm writing directly but you calculate and write. Then we have P 0 what it is? Q1 P 0 Q1 P 0 P 0 into Q1 11 into 27 it is 297 just calculate and take down uh guys okay 264 12612 and if you add all of them how we are getting this summation we are adding all these values we are adding all these values in order to get this add all these values in order to get this we are done with our table. Now what we need to do? We need to just substitute the values. How to substitute the values?

[00:07:23]What is P1 Q0? P1 Q0 it is 769.

[00:07:30]Right? So let me just take under root 769 P 0 Q0 what it is? P 0 Q0 is 707.

[00:07:41]So it is 707 into P1 Q1 it is 839 839 P 0 Q1 last one it is 799 799 here into 100 it is just do it okay do the calculation part 769 divided by 707 it will be Uh let me do it again. 769 divided by 707.

[00:08:25]Uh it is around 1.087.

[00:08:30]Okay. Then do this as well. 839 divided by 799.

[00:08:36]It is 1.0501 into 100. You have to do just do it guys like just do it how much it will be let me just do 1 0 877 into 1.0501 into 100 okay this and I'm just doing root just click on this root you will get it how much it is 106.87 87 done. This is our Fisher's ideal index. Now we need to find time reversal test. I'm just writing the short form but you have to write it clearly. And this one is satisfied only when P10 into P10.

[00:09:25]This will be done. Okay. Now P 01 formula is nothing but this formula.

[00:09:33]Whatever Fisher's ideal index formula is there that you have to take. Just ignore this into 100. Okay, same you have to take. So let me just directly substitute the values guys. You just write the formula here. Okay, I'm not going to waste much of my time or your time.

[00:09:49]Okay, this formula you have to note it down. Just ignoring this 100. Okay, so yes, P1 Q1 whatever the values have been given here that values only will come here, right? Same ling same value 7 9 70 into 839 799 same 100 just as I said you now just do it 77 into 1.0501 and nothing fancy.

[00:10:40]Now let me do this. Okay.

[00:10:44]1.087 into 1.0501 under root.

[00:10:56]Uh, let me do it again.

[00:11:05]1 087 into 1.0501.

[00:11:16]Yeah. Do it under root and what you are getting? You're getting around one, right? One you're getting one t one under root one normal one under root.

[00:11:36]Okay it is one. Now we need to also find this right. Let me just check. Yeah we need to also find this right. P 0 P1.

[00:11:49]Okay. Same same formula but one same formula but it is as simple as that.

[00:12:12]Now we also need to find uh that uh P1 0 right? P1 0 to same formula same but numbers different P Q0 sigma P1 Q0 1 substitute the values P 0 Q1 P Q1 799 under root then P1 Q1 P1 Q1 839 then P 0 q0 it is 707 7 then P1 Q0 P1 Yeah 769 I go substitute values just substitute the values guys just a minute mobile stand just a minute let me just adjust it a Yeah guys, so yes we were here right? So we have just substituted substituted the values. Okay, whatever the values has been given. Now let us just do this 799 sorry 799 divided by 839 how much it is? it is around 0.952 something. Then we have 707 divided by 769 which is around 0.91 I guess. Yeah. Now what you do is just remove the just perform the calculation and remove the root 0 91 under root. Okay guys, see I'm nothing has been done. See 0 952 into 0.91.

[00:14:39]Okay, these values we have taken. Now yes this watch it is we need to just remove this root right. I just removed the root. It is 0.93 which is uh one itself one right 0.9.

[00:14:59]Now you can see we got the same for P 01 as well as P10. So what it means guys?

[00:15:09]Please concentrate what it means.

[00:15:12]It means p 01 into p 1 0 is 1. Okay. So here you need to clearly mention here you need to clearly mention the index number satisfies the time reversal test. You have to write it is one right. So you have to write this.

[00:15:43]Now we have factor reversal test. How to do this factor reversal test guys?

[00:15:50]Same whatever has been like first let me do this P 01 into Q01 you have to do which will be like sigma P1 Q1 sigma P 0 q0.

[00:16:10]So now P 01 P 01 same formula P1 formula time reversal test same formula same okay and now if we talk about Q01 Q01 C Okay.

[00:16:50]Under root index formula sigma p1 q0 / sigma p 0 q0 into sigma p1 q1 into sigma p 0 q1. This is about this. But what about Q01? Q1 opposite.

[00:17:15]Wherever you're finding P1 Q as simple as that Q under root sigma Q1 Q then P Q P simple opposite P Q as simple as that. Okay. After that, so let us just take all of them together.

[00:17:50]Okay.

[00:18:24]Yeah, I'm sorry guys. I just received a message. Huh?

[00:18:29]P1 Q0 by Sigma P 0 Q0 into sigma P1 Q1 sigma P 0 Q1 that only we took Take the same thing as just P.

[00:19:04]I told it right. Right. Same.

[00:19:08]Sigma Q1 P 0 Sigma Q0 P 0 into Sigma Q1 P1 into sigma Q0 P1.

[00:19:23]Now just check P1 Q0 and uh N P1 Q0. Yes, we have this this and this will get cancelled. Then P Q P1 P1 Q1 P1 Q1 see P 0 Q1 Yes, we have P 0 and Q1 this one and this one will get cancelled. So P1 Q1 square then we have P 0 Q0² what we will be left with we will be left with P1 Q1 value P1 Q1 value P1 Q1 839 839 or P 0 Q0 P 0 q0 value 707 to yes 839 / 707 839 divided by 707 1.18 8 which is again one. Okay. Now again you write the index number satisfies uh the FRT. Okay. Factor reversal test. So this is as simple as that.

[00:21:23]Okay. Or else you can do it in this way.

[00:21:26]It's completely your wish. So this was the complete explanation. How was the explanation? Do let me know in the comment section. If you want me to make many more practice uh videos like if you want me to explain uh textbook questions like just like that practicing explanation do let me know in the comment section. For notes message me on my Instagram. Join our telegram channel for important updates. Do check out our playlist. playlist link is available in this video description for all explanation videos. All the very best.