 Hello and welcome to the session. In this session, we will discuss a question which says that, from the following data, compute price index by using simple average of price relatives. And here, this data is given to us. In the first column, the commodity is all given as A, B, C, D, E and F. In the second column, the prices in the year 1979 in dollars are given as 20, D, D, 25, 15, 4 and 14. And the prices in the year 1918 in dollars are given as 22, 20, 26, 17, 4 and 15. Now, before starting the solution of this question, we should know a result. And that is, by the simple average of price relative method, P01 is equal to summation of P1 over P0 into 100 the whole, upon N, where N is the number of items or commodities. And P01 is the price index number for the current year with reference to the base year. And P1 here denotes the current year prices and P0 denotes the base year prices. And that is, in this method for calculating the price index number, we will compute the price relatives P1 over P0 into 100 of all the commodities under consideration. And then we will find the average of these price relatives by using the arithmetic mean. And P01 is equal to summation of P1 over P0 into 100 the whole, upon N. Now, this result will work out as a key idea for solving out this 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 a table. Now, in the first column, we have written the commodities. In the second column, the prices in the year 1979 in dollars. We have written the prices in the year 1980 in dollars. And we have made one more column in which we will calculate the price relatives. Now, the year 1979 will be the base year for the year 1980. So, the prices in the year 1979 that is the prices for the base year will be denoted by P0. And the prices in the current year will be denoted by P1. And for calculating the price relatives, we will use the formula that is P1 over P0 into 100. So, here for the commodity A, the price relative will be equal to P1 over P0. That is 22 over 20 into 100 which is equal to, and for the commodity B, the price relative will be equal to 20 over 18 into 100 which is equal to 111.11. Then for the commodity C, the price relative will be 26 over 25 into 100 which is equal to 104. Then for the commodity D, the price relative will be equal to 17 over 15 into 100 which is equal to 113.33. Then for the commodity E, the price relative will be 4 over 4 into 100 is equal to 100. Then for the commodity F, the price relative will be equal to 15 over 14 into 100 which is equal to 125. Now by using the result which is given in the key idea, we can find out the price in this number on adding all the values of the price relatives. We are getting summation of P1 over P0 into 100 the whole is equal to 63.44. Now here the number of commodities is 6. Therefore, the price index number P1 over year 1980 taking the year 1979 as the base year is equal to summation of P1 over P0 into 100 the whole whole upon N which is equal to 663.44 whole upon N which is equal to 110.57 or 110.6. So we have got the price index for the year 1980 taking 1979 as the base year is equal to 110.6. This shows that as compared to the year 1979, there is an increase in the prices of the commodities included the index to the extent of about 11%. So this is the solution of the given question and that's all for this session. Hope you all have enjoyed the session.