Index Numbers

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Laurine G

 

Date added:

May 4, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1456

 

Was viewed:

3719 times

 

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Essay content:

But practically, if we think changes in different variables are different and that too, upward or downward, then the price is quoted in different units i.e milk for litre, rice or wheat for kilogram, rent for square feet, etc We want one figure to indicate the changes of different commodities as a whole...
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This is called an Index number. Index Number is a number which indicate the changes in magnitudes. M.Spiegel say, “ An index number is a statistical measure designed to show changes in variable or a group of related variables with respect to time, geographic location or other characteristic”. In general, index numbers are used to measure changes over time in magnitude which are not capable of direct measurement...
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