Here, prices and total expenditure of items are given.
Total expenditure of an item = (Price per unit of an item) × (Quantity consumed of an item)
∴ Quantity consumed of an item = \(\frac{Total expenditure of an item} {Price per unit of an item }\)
From the given data using the above formula we will find the quantity consumed for each item. To compute Paasche’s and Fisher’s index number, the table for calculation is prepared as follows:
Paasche’s index number:
Fisher’s index number:
Hence, Paasche’s Index number is obtained as 115.2 and Fisher’s index number is obtained as 115.14.
