 Hello and welcome to the session. In this session, first of all we will discuss the meaning of index number. Now as we know that there is a change in economic and business data from time to time. For example, prices of all commodities sometimes rise and sometimes fall. Also, output of a commodity sometimes rises and sometimes falls. These changes are measured by a statistical device known as index numbers. Also, we can say that index numbers indicate the state of certain variable at any given time or place in comparison with the state in variable standard time, the characteristics of index numbers. Now the first round of index numbers, now we can call it a specialized average as in comparing the changes in the variables in different units. Whereas, averages can compare those variables which are in the same units. In the construction of a consumer price index, various items are taken into account such as food, house and clothes, lighting and other mysterious items which are in different units. Now the index numbers measure the relative changes also represent the changes taking place in some variable on an average only. Also, the index numbers are expressed but the percentage sign is never used. They measure the changes which are not capable of direct measurement. And the index numbers are comparative here. The position in base year and current year are compared. And now let us discuss the uses of index numbers. Now in present times index numbers are important statistical rules and their use and importance is increasing. They are widely used in economic and business fields in measuring relative changes. Now we will discuss the main uses of index numbers. Now the first one is the index numbers makes possible the measurement of complex changes whose direct measurement that is the changes in some quantities which we cannot observe directly. Also the index numbers measure the relative change. These are the relative changes therefore by index numbers the salary of a government and other employees can be fixed as the rate of deal with allowance and any increase from time to time depends upon the cost of living index. The index numbers reveal trends and framing suitable policies. Also they have been making comparisons by reducing the changes to percentages which are easily comparable. Economic barometers, inflationary and they also measure the purchasing power. So these were the various uses of index numbers. In this session we have learnt about the meaning, characteristics and uses of index numbers. So this completes our session. Hope you all have enjoyed the session.