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are to be representative, proper weights should be assigned to the
commodities according to their relative importance.

For example, the prices of books will be given more weightage while
preparing the cost-of-living index for teachers than while preparing
the cost-of-living index for the workers. Weights should be unbiased
and be rationally and not arbitrarily selected.

6. Purpose of Index Numbers:
The most important consideration in the construction of the index
numbers is the objective of the index numbers. All other problems or

steps are to be viewed in the light of the purpose for which a particular
index number is to be prepared. Since, different index numbers are
prepared with specific purposes and no single index number is ‘all
purpose’ index number, it is important to be clear about the purpose

of the index number before its construction.

7. Selection of Method:
The selection of a suitable method for the construction of index

numbers is the final step.