by kasi | Jun 20, 2010 | Descriptive statistics
If the quantities of base time period are taken as weights, the weighted aggregative price index is called Laspeyres price index. This method of calculating price index is also called base year quantity weight method. The appropriateness of laspeyres price index... by kasi | Jun 20, 2010 | Descriptive statistics
If the weights are taken as the arithmetic mean of base and current year quantities, then the weighted aggregative index is called marshal edgeworth index. Like Fisher’s index, Marshall edgeworth index also requires too much labor in selection of commodities. In some... by kasi | Jun 20, 2010 | Descriptive statistics
If the quantities of current time period are taken as weights, the weighted aggregative index is called Passche’s Price Index. Since Passche’s Price Index is calculated by taking current year quantities as base therfore it is also called current year quantity weight... by kasi | Jun 19, 2010 | Descriptive statistics
Consumer price index compares the price changes with changes in income, wage rates, retail sales etc. Consumer price index is also known as cost of living index and can be used to know whether income keeps pace with the cost of living. The importance of consumer price... by kasi | Jun 19, 2010 | Descriptive statistics
Most index numbers are subjected to revision from time to time due to different reasons. In most cases it becomes compulsory to change the base year because numerous changes took place with the passage of time. For example changes may happen due to disappearance of...