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.
2
Q
What is the formulae for index numbers?
A
Index Number = Current Figure/Figure In Base Time Period X 100
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.