answersLogoWhite

0


Best Answer

The price index is a simple sum - the sum of the prices for a list of articles and services considered to be "typically" used by a family. The real trick consists in (a) defining what products and services (and in what quantities) are "typical", and (b) finding out the actual prices.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar
More answers
User Avatar

AnswerBot

7mo ago

The formula for calculating a price index is (Current Year Cost / Base Year Cost) x 100. The result gives you the price index value, representing the percentage change in price between the current year and the base year.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the mathematical formula for calculating price index?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the formula of calculating increase in real GDP?

Nominal GDP/CPI*100 answer will be in $ amount


What is the value of the consumer price index?

The consumer price index (CPI) provides a method for calculating the price changes that consumers and household managers face over a stated period.


What is the mathematical formula for price elasticity of demand?

% change in quantitydemanded divided by % change in price.


What is the formula for calculating forward FX?

The formula for calculating forward FX is Forward price - SpotÊÊprice x 12 x 100. This is used to compute the annual forward premium.Ê


Formula to calculate cpi?

how can we calculate cpi(consumer price index) .


What is the mathematical formula for calculating terms of trade?

Terms of trade = Price of Exports / Price of Imports The prices of exports and imports are usually calculated with respect to a specified base year. From that it is possible to calculate changes in the mix and the value of the trade flows to arrive at prices for the period in question.


What role does the consumer price index play in calculating inflation?

The higher the consumer price index becomes, the higher the cost of living will be because it will take a larger income to buy the same things they used to buy due to increased prices.


What is the formula for chain base index numbers?

(price of commodity in the given year/ price of the commodity in preceding year) * 100


Formula for calculating gross?

GP=(sell price-cost)/sell price. In excel, whatever result you get format that cell to be a percentage by hitting the % button in the menu bar.


What has the author Wolfgang Eichhorn written?

Wolfgang Eichhorn has written: 'Functional equations in economics' -- subject(s): Functional equations, Mathematical Economics 'Theory of the price index' -- subject(s): Price indexes


A measurement that shows how the average price of a standard group of goods changes over time is referred to as the .?

Price Index


When calculating the cost of capital how should the share premium be calculated?

share premium could be calculated as by getting the difference between the market price of the share and its nominal price. Formula: Share Premium= Market Price - Nominal Price