Index Numbers

Introduction Index numbers are meant to study changes in the effects of factors which cannot be measured directly. According to… Click here to read more

The main uses of index numbers are given below. Index numbers are used in the fields of commerce, meteorology, labour,… Click here to read more

They are simply rough indications of the relative changes. The choice of representative commodities may lead to fallacious conclusions as… Click here to read more

The following steps are considered for the construction of price index numbers. Object The first and most important step in… Click here to read more

In fixed base method, a particular year is generally chosen arbitrarily and the prices of the subsequent years are expressed… Click here to read more

In this method, there is no fixed base period; the year immediately preceding the one for which the price index… Click here to read more

There are two methods of constructing unweighted index numbers: (1) Simple Aggregative Method (2) Simple Average of Relative Method Simple Aggregative… Click here to read more

When all commodities are not of equal importance, we assign weight to each commodity relative to its importance and the… Click here to read more

The wholesale price index numbers indicate the general condition of the national economy. They measure the change in the prices… Click here to read more

Consumer price index numbers measure the changes in the prices paid by consumers for a special “basket” of goods and… Click here to read more

There are two methods to compute consumer price index numbers: (a) Aggregate Expenditure Method (2) Family Budget Method Aggregate Expenditure Method… Click here to read more