From the data given below construct a price index number of the group…

The correct answer is Option (2) → 219.12

However, expenditure is given which is the product of price and quantity. To find out quantity total expenditure will be divided by the price per unit.

Commodity	Items	$p_0$​	$q_0$​	$p_1$​	$q_1$​	$p_0​q_0$​	$p_0​q_1$​	$p_1​q_1$​	$p_1​q_0$​
A	1	2	20	5	15	40	30	75	100
B	2	4	4	8	5	16	20	40	32
C	3	1	10	2	12	10	12	24	20
D	4	5	5	10	6	25	30	60	50
1	1	1	1	1	1	$\sum p_0q_0 = 91$	$\sum p_0q_1 = 92$	$\sum p_1q_1 = 199$	$\sum p_1q_0 = 202$

Since Fisher's formula is ideal formula, so we calculate price index number by Fisher's Method.

$\text{Fisher's index number } P_{01} = \sqrt{\frac{\sum p_1q_0}{\sum p_0q_0} \times \frac{\sum p_1q_1}{\sum p_0q_1}} \times 100$

$P_{01} = \sqrt{\frac{202}{91} \times \frac{199}{92}} \times 100$

$P_{01} = \sqrt{4.8015} \times 100 = 2.1912 \times 100 = 219.12$