Quantitative Methods Flashcards

1
Q

What are the characteristics of index numbers?

A

-No units (e.g. £, €, $).
-Base value has an index value of 100.

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2
Q

What is the formulae for index numbers?

A

Index Number = Current Figure/Figure In Base Time Period X 100

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3
Q

At a cinema, the price of a ticket rose from £5 in 2014 to £6.15 in 2015.
Calculate an index number for the cinema ticket price in 2015, taking 2014 as the base year.

A

2014: £5. (Index: 100).
2015: £6.15.

£6.15/5 X 100 = 123 (index number).

23% price increase.

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