4) Calculating Index Numbers

Question 0

What is the formula for calculating index numbers

Answer 0

Index number =(data/ base year) x 100

Question 1

What is index numbers?

Answer 1

• used to compare data over a period of time
• one year is chosen as the base year
• rest of the statistics in the series, are compared with the value in the base year
• the value of the base year is usually 100

Question 2

How do we compare changes over time????

Answer 2

(New value -old value ) /old value x 100