Index numbers Flashcards
1
Q
What d index numbers do
A
They compare a current years data to a base year
2
Q
What will the base year always be
A
a value of 100
3
Q
What must you do with index numbers
A
Always compare the data to the base year
4
Q
What calculation do you do if you do not have the base year raw data
A
(Current year’s raw value/ previous year’s raw value) x previous year’s index value
5
Q
How do you calculate a weighted price index
A
- multiply the weight by the price index for each category
- Add the figures together
- Divide by 1000
6
Q
How do you create an index number
A
Current year price divided by base year price x 100
7
Q
A
