Index numbers Flashcards
Equation for index number?
price/base year price x 100
If the index number is below 100, what has happened to the value?
decreased
If the index number is above 100, what has happened to the value?
increased
What is RPI?
rate of change of everyday goods
when is RPI calculated?
monthly
what is CPI?
measure of inflation
What is GDP?
value of goods and services
When is the economy in recession?
if the GDP falls in 2 (or more) successive quarters
what do weighted index numbers take into account/
proportions
what do the weightings in weighted index numbers reflect?
the importance of different items
what is the equation for weighted index numbers?
sum of (index number x weight)/sum of weights
what year is the base year for chain base index numbers?
the previous year
what is the equation for chain base index numbers?
price/last year’s price x 100
2 examples of chain base index numbers
CPI and RPI
what do crude rates tell you?
how things change in every 1000
what are crude rates usually
births, deaths, marriages or unemployment
why do crude rates need to be recorded?
to make plans for the future
what is crude rate?
how many times a particular event occurs per 1000 of the population at a given time
what is the equation for crude rate?
number of events/total population x 1000
how can crude rates be misleading?
when used for comparing against another area which has a different distribution of ages
what does standard population represent?
the whole population
what is standard population?
a hypothetical population of 1000 people used to represent the whole population
what does standard population take into account?
the number of people with different age/gender/income
what is the equation for standard population?
number of people in one age group/total population x 1000
what does standardised rate allow you to do?
- compare the same age group in different populations by using the standard population
- allows for more realistic comparisons
what is the equation for standardised rate?
crude rate/1000 x standard population
how do you find the standardised rate for the entire population?
add up the standardised rates for each group
