 Hello and welcome to the session. In this session we will discuss the question which says that compute price index for the following data by applying weighted average of price-creative method and this data is given to us in which in the first column the items are given as rice, tea and oil and the corresponding prices in the year 2001 in dollars are given as 20, 150 and 60 and the corresponding prices in the year 2003 in dollars are given as 25, 180 and 75 and the quantities in the year 2001 are given as that is the quantity of rice in 2001 is 13 kilograms and of tea it is 10 kilograms and the quantity of oil is 15 litres. Now before starting the solution of this question we should know a result and that is by the weighted average of price-creative method P01 is equal to summation of P1 over P0 into 100 the whole into P0 Q0 whole upon summation of P0 Q0 that is P01 is the price index number for the current year with reference to the base year even denotes the current year prices P0 denotes the base year prices of the given commodities under consideration and P0 Q0 denotes the weights that is the weight is denoted by W versus equal to P0 Q0 where Q0 is the quantity of the commodity in the base year all you can write P01 is equal to summation of W into X over summation W where is P1 over P0 into 100 that is the price relative now this result will work out as the key idea for solving out the given question and now we will start with the solution first of all we will draw a table for the given data so we have drawn the table for the given data in the first column we have written the items in the second column we have written the corresponding prices of the given items in the year 2001 in dollars which are denoted by P0 as 2001 is the base year for the year 2003 therefore the prices of the given items in the year 2001 are the base year prices and in the year 2003 the prices are denoted by P1 that is these are the current year prices of the given items and in the next column the quantities of the given items in the base year that is the year 2001 are denoted by Q0 then in the next column we will find W which is equal to P0 into Q0 then in the next column we will find X which is equal to P1 over P0 into 100 then in the last column we will find W into X now for rise the weight W will be equal to P0 into Q0 that is 20 to 30 which is 640 it will be 1500 for oil it will be 16 into 15 which is equal to 900 now let us find X that is the price related which is equal to P1 over P0 into 100 now for rise it will be P1 over P0 that is 25 over 20 into 100 which is equal to 125 40 it will be 180 over 150 into 100 which is equal to 120 and for oil it will be 75 over 60 into 100 which is equal to 125 now let us find W into X now 600 into 125 is 75000 now here 1500 into 120 is equal to 180000 now 900 into 125 is equal to 112500 now on adding all the values of W we are getting summation W is equal to 3000 and on adding all the values of W into X we are getting summation of W into X is equal to 367500 now using the result which is given in the key idea we can find out the price of the X number so the price of the X number P0 to 1 for the year 2003 taking 2001 as the base year is equal to summation of W into X over summation W which is equal to 367500 upon 3000 and on calculating it will be 102.5 therefore P01 is equal to 102.5 so this is the solution of the given question and that's all for this session hope you all have enjoyed the session