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An index of two store items for 2007 based on 2004 is to be constructed. The information for the prices and quantities for both years is given below. Use 2004 as the base period and 100 as the base value.
2004 2007
Item Price ($) Quantity Price ($) Quantity
Item 1 69 488 76 518
Item 2 44 1218 54 1309
For full marks your answer should be accurate to at least one decimal place.
Determine Fisher's ideal index.
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