4.2.1.3 - index numbers Flashcards

1
Q

How to calculate index number with a base year

A

( new year / base year ) x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Calculate index number with no base year

A

( current year raw value / previous year raw value ) x previous year index value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is an index number

A

A number used to show the size of changes in a variable overtime - it simplifies complex data into statistics that can easily be analysed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a weighted index number

A

An average index, made up of a combination of other indices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why are index numbers useful

A
  • Comparisons can be made over periods of time
  • the size of a change is highlighted, allowing for easy interpretation.
    ( used when the actual values aren’t as important as the magnitude of change
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How to calculate a weighted index

A

Price index x weight ( sum of all price indices) / sum of weights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly