Quartiles, recession, line of best fit and index numbers Flashcards
Define ‘index numbers’
A comparison of the price of an item with a base year price, which has an index of 100
What is the equation for working out the index number?
(price / base year price) x 100
How does the index number show a change in value?
Above 100 - increase in value
Below 100 - decrease in value
What is the equation for working out the weighted index number?
(weighted mean / base year weighted mean) x 100
What is the equation for working out the chain base index number?
(price / last year’s price) x 100
What is the RPI?
Retail Price Index - shows the rate of change of prices in everyday life, such as mortgage payments, food, heating and petrol.
The UK government uses it to set the interest rate for student loans
What is the CPI?
Consumer Price Index - the rate of price change in everyday life, but doesn’t include mortgage payment.
State benefits and pensions in the UK are updated each year in line with the CPI
What is the GDP?
Gross Domestic Product - the value of goods and services a country produces within a stated time period
Define ‘recession’
When the GDP of a country falls in two or more successive quarters
How is the mean related to the line of best fit?
The line of best fit must go through the mean
How are the points placed in comparison to the line of best fit?
Same number of points on either side of the line of best fit
How do you calculate the IQR?
Q3 - Q1 = IQR
Upper quarile - lower quartile = IQR
How do you calculate the lower and upper quartile?
Q1 = n+1 x 1/4
Q3 = n+1 x 3/4
