INDEX NUMBERS Definitions An index number is a percentage ratio of prices , quantities or values comparing two time periods or two points in time. The time period that serves as a basis for the comparison is called the base period and the period that is compared to the base period is called the given or current period . An Index number helps in the calculation of percentage change in a phenomenon with respect to a base parameter making the comparison of data much more convenient. The knowledge of index number comes in very handy for working with a complex set of data. Business Mathematics and Statistics > Index Numbers. An index number designed to measure changes in the general price level in a country would be general purpose index number. On the other hand, an index number aimed at comparing the prices of particular items, e.g. cigarettes would be a special purpose index number. In statistics and research design, an index is a composite statistic – a measure of changes in a representative group of individual data points, or in other words, a compound measure that aggregates multiple indicators. Indexes summarize and rank specific observations. Defining Purpose In the construction of index number, the defining purpose is the important step and indicates the purpose of measure to be calculated. Since the choice of weights, commodities, and base year all depend on the purpose of measure therefore it is necessary to define it before the construction of an index number. OECD Statistics . Definition: An index number in which the component items are weighted according to some system of weights reflecting their relative importance. In one sense nearly all index numbers are weighted by implication; for example, an index number of prices amalgamates prices per unit of quantity and the size of these units may vary A general index number of price covering all goods and services no doubt will serve a useful purpose in analysing economic and business activities. The importance or the uses of index numbers of prices are listed: (a) Measures Changes in Price Level and Standard of Living:
An index number in statistics is a tool that we generally use to measure the difference in relative changes from time to time. The difference can also be from place
Index numbers are used to measure changes in the value of money. A study of the rise or fall in the value of money is essential for determining the direction of Construction of Price Index Numbers (Formula and Examples) 5. general level of prices can be measured by a statistical device known as 'index number.' Since, different index numbers are prepared with specific purposes and no single Prices 2. Method of Constructing an Index Number of Prices 3. Uses 4. Limitations. There are various statistical measures of computing averages. These are I. OBJECT AND USES OF INDEX. 1. This study has two main objects. One is to provide guidance on matters both of basic concepts and of statistical practice to The definition and meaning of an index number is an economic data figure that Jim O'Donoghue and Martin Placek, from the UK's Office for National Statistics, The speaker uses UK gross domestic product (GDP) data in his presentation. What are index numbers? Index numbers are a useful way of expressing economic data time series and comparing / contrasting information. An index number is Consumer price index measures price changes of a variety of consumer goods and services and is used to define the cost of living. The Quantity Index: It
The pure statistical theory of index numbers is general in the sense that it Before describing Fisher's criteria, let us define P” as the index number given by
A general index number of price covering all goods and services no doubt will serve a useful purpose in analysing economic and business activities. The importance or the uses of index numbers of prices are listed: (a) Measures Changes in Price Level and Standard of Living: Index numbers of imports, exports, wages , employment and population importance can not be ignored. Following are the main uses of index number : 1. A Barometer :-Index numbers serve as a barometer for measuring the value of money. With the help of index number … index number statistics Index numbers are of four types. They are price index numbers, quantity index numbers, value index numbers and special purpose index numbers. Price index numbers are useful for studying changes in price level. Wholesale price index numbers reveal the changes in wholesale prices over a period of time. Based On the types of Index Numbers. Prepared By Siddhant Kumar Behera. Ravenshaw University Student Of IMBA-FM. A special-purpose index combines and weights a heterogeneous group of series to arrive at an overall index showing the change in business activity from the base period to the present. Statistics lecture 12 (chapter 12
Defining Purpose In the construction of index number, the defining purpose is the important step and indicates the purpose of measure to be calculated. Since the choice of weights, commodities, and base year all depend on the purpose of measure therefore it is necessary to define it before the construction of an index number.
An index number in statistics is a tool that we generally use to measure the difference in relative changes from time to time. The difference can also be from place Index numbers are used to measure changes in the value of money. A study of the rise or fall in the value of money is essential for determining the direction of Construction of Price Index Numbers (Formula and Examples) 5. general level of prices can be measured by a statistical device known as 'index number.' Since, different index numbers are prepared with specific purposes and no single Prices 2. Method of Constructing an Index Number of Prices 3. Uses 4. Limitations. There are various statistical measures of computing averages. These are I. OBJECT AND USES OF INDEX. 1. This study has two main objects. One is to provide guidance on matters both of basic concepts and of statistical practice to The definition and meaning of an index number is an economic data figure that Jim O'Donoghue and Martin Placek, from the UK's Office for National Statistics, The speaker uses UK gross domestic product (GDP) data in his presentation.
The definition and meaning of an index number is an economic data figure that Jim O'Donoghue and Martin Placek, from the UK's Office for National Statistics, The speaker uses UK gross domestic product (GDP) data in his presentation.
In statistics and research design, an index is a composite statistic – a measure of changes in a representative group of individual data points, or in other words, a compound measure that aggregates multiple indicators. Indexes summarize and rank specific observations. Defining Purpose In the construction of index number, the defining purpose is the important step and indicates the purpose of measure to be calculated. Since the choice of weights, commodities, and base year all depend on the purpose of measure therefore it is necessary to define it before the construction of an index number. OECD Statistics . Definition: An index number in which the component items are weighted according to some system of weights reflecting their relative importance. In one sense nearly all index numbers are weighted by implication; for example, an index number of prices amalgamates prices per unit of quantity and the size of these units may vary A general index number of price covering all goods and services no doubt will serve a useful purpose in analysing economic and business activities. The importance or the uses of index numbers of prices are listed: (a) Measures Changes in Price Level and Standard of Living: Index numbers of imports, exports, wages , employment and population importance can not be ignored. Following are the main uses of index number : 1. A Barometer :-Index numbers serve as a barometer for measuring the value of money. With the help of index number … index number statistics