0
In the simplest case, you select one period to represent the base period. Suppose the value of the variable for this period is V.
The index is calculated by multiplying the value for each period by 100/V. This results in the base period having an index of 100 and all the other periods are represented by their percentage relative to the base period.
Things get more complicated when you consider (mainly) economic index numbers such as price indices. A simplistic description of a price index is as follows: identify a "basket" of goods and services that the price index is required to cover. Calculate a price index for each item using the same base year. Then calculate the weighted average of these indices, where the weights reflect the importance of the goods in the total spend - either in the base period or the current period.
Still curious? Ask our experts.
Chat with our AI personalities
Rafa
Blake
BeauAdd your answer:
Earn +20 pts
What are the problems associated with the construction of index numbers under selected items?
what are the problems associated with the construction of index numbers
What the uses of index number in index index?
uses of index
What is the meaning of coordinate index?
Coordinate index ? Sure ! It's easy ... You just have to coordinate your index number !
What are method use in Stock Exchange for calculation Index?
The stock exchange index is a relative measure of the performance of all or a number of stocks that are traded on a stock exchange. it incorporates the return on stocks, their volumes traded and the shares outstanding. there can be a number of indices relating to a single stock exchange that incorporates the returns on a number of companies. they can also be differentiated on the basis of the return on different industries.
What does index mean in maths terms?
index is the same as power The index of a number say how many times you have to use the number in a multiplictaion. e.g; 2 10 = 10*10=100
