Topic 2 Indexes

Question 1

Base period index

Answer 1

100 - reference period - period that we compare

Question 2

why base period index

Answer 2

to help us to compare different variables at different moments

Question 3

singular price index definition

Answer 3

determine the price evolution of one item or product

Question 4

formula for singular price index

Answer 4

Pt/p0 x 100

Question 5

year t

Answer 5

current year
year for which we calculate index

Question 6

calculating % change

Answer 6

price index2 - price index 1 / price index 1 x 100

Question 7

singular quantity index definition

Answer 7

determines quantity evolution of one item or product

Question 8

formula singular quantity

Answer 8

Qt/Q0 *100

Question 9

singular value/ revenue index definition

Answer 9

determine the value or revenue evolution of one item or product

Question 10

singular value formula

Answer 10

PtxQt/P0xQ0 * 100

Question 11

demographic index definition

Answer 11

to compare the use or the consumption of a product or brand of one group (segment) with the use or the consumption of another group (segment)

Question 12

demographic index formula

Answer 12

percentage users/percentage population * 100

Question 13

greographic index:BDI definition

Answer 13

compare the use of a brand in a certain certain segment with the use of this brand in another segment

Question 14

Brand development index formula

Answer 14

% of brand in market x/% of population in market x * 100

Question 15

CDI

Answer 15

Category Development Index

Question 16

CDI definition

Answer 16

compare the use of a product in a certain segment with the use of this product in another segment

Question 17

CDI formula

Answer 17

% of product in market x/ % of population in market x *100

Question 18

average consumption

Answer 18

100

Question 19

important question

Answer 19

where to spend budgets

Question 20

two types of multiple index

Answer 20

unweighted
weighted

Question 21

unweighted definition

Answer 21

all items are equally important in the index

Question 22

weighted definition

Answer 22

every item gets an own “weight” by working with weighting coefficients

Question 23

unweighted multiple index steps

Answer 23

step 1= calculate for each fruit the individual price index for year 1 and year 2
step 2 = calculate the average of the price index numbers of the 3 fruits

Question 24

weighted multipe index steps

Answer 24

step one is the same as unweighted
step 2 multiply for each fruit the individual price index with the appropriate weighting coefficient