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The construction of Index Numbers involve certain problems, which will have to be tackled cautiously so that the Index

Number so constructed will be meaningful. Index numbers are constructed for variety of purposes. The items to be included in the Index, the prices to be considered etc., depend on the object with which a particular Index Number is constructed. So the first step is to decide the purpose of the Index. Now let us discuss the problems involved in the construction of the Index Numbers. As already stated, the items to be included in the Index, depend upon the purpose for which the Index is constructed. The problem of the selection of items arises on account of the fact that it is neither possible nor necessary to take into account all the items. The items should be selected in such a manner that they are representative of the tastes, habits and customs of the people for whom the index is meant. Since the comparison of the relative price level is possible only if the quality of commodity does not change much, the item selected should be stable in quality and grade. In the c ase of commodities having different varieties like Rice, wheat, etc., the varieties which are in common use should be included. The inclusion can be done in two ways. Firstly prices of the varieties to be included, are averaged before their inclusion in the Index Number, Alternatively all the varieties are varieties are included and their prices are entered separately and not averaged. (LOWER) After the commodities have been selected, the next problem is that of the collection of their prices. The prices of a commodity very from place to place to place and even in the same place, from one shp to another.

After selection of the place, the next step is to appoint representatives who would supply the price quotations from time to time. A particular year is chosen arbitrarily and the prices of the subsequent years are expressed as percentage of prices of the base year. Aperiod of a few years is selected and the average price. We may not always get a satisfactory base year form every point of view. It is always desirable to have a base of a fairly recent period. So that there may not be agreat change in the Economic conditions (HIGHER) That alone is entitled to the name of knowledge which makes clear to us the nature of the self and gets us bliss of freedom. The learning which sharpens our intellect without helping up to attain such freedom is no better than merit in some art. It can help us only to give us intelligence enough to get on in the world and perhaps escape a few of its troubles. The kind of education given in schools and olleges in these days falls only in this category even if we resort to such education for getting some facility in worldly contact, we must ever bear in mind that to attain the highest good it is necessary to seek and otain the noledge that will lead to permanent. Such knowledge is quite unlike other kinds of learning and the method of obtaining it also differs vastly form others. It must be made pure and clear and capable of receiving the highest knowledge which will dispel all ignorance and secure to the self-freedom from all bondage. To ensure such purity, it is first necessary to get rid of the impurities which cloud our intellect, this can be done only carrying out the duties prescribed for each one of us by the sastras with regard to our competence and station in life. We must seek a competent guru and wait upon him till we become worthy of his grace. Then we must learn form him the eternal truths, understand

them deeply and make every effort to realse them in actual experience. When sound or other object aomes into contact (LOWER) with the ear or other sense, even animals like a cow turn away form it if found to be agreeable. A cow that sees a man holding a stick in this hand knows that the he is likely to beat her and runs away from him. If however she sees him with a handful of resh grass, she does hear him. Similarly the most learned among men keep away at a great distance fom those whom they know to be strong and cruel and approach others who are the reverse of them. The temporary relief from misery which we are content to seek after in this world are common to us and the animals. If these were to be the only bebefits to be obtained by our efforts and if we use our intellects only for securing them, we cannot claim to be any better.(HIGHER)