Index numbers Flashcards
1
Q
What is the base yr. value always equal to?
A
100
2
Q
Formulas for calculating index numbers
A
Change in percentage = difference/original x 100
new yr./ base yr. x 100
3
Q
What are index numbers used for?
A
Statistical technique to compare, analyse and interpret large numbers
4
Q
Formula for when you are not given the base yr. and need to calculate the index number for the next year.
A
Year you’re calculating/ previous year x base yr. (100)
