index numbers

Question 1

What can index numbers be used for

Answer 1

• Can be used to make numerical data easier to understand.
• Can be used to measure changes and simplify comparisons.
• Can show changes over time in costs, prices, income and economic output data.
• Using index numbers allows data to be standardised over time so that the data is easily comparable.
• Can be used to show the percentage difference between two years

Question 2

The base year of index numerical data’s base year is always…

Answer 2

The base year of index numerical data’s base year is always 100