Frequency Distribution Table

Now we know about class interval, class limits, size of class interval, frequency distribution, class boundaries and mid class. On the basis of all these concepts, we are now able to construct a frequency distribution table with the help of problem A.  Problem A:...

How to Calculate an Index Number

An index number is a percentage value designed to measure the over all change in a variable, or in a group of related variables, by reference to a base value. In other words it is a number that measures the change in a variable over time. For example an index number...

Problems in the Construction of Index Numbers

The construction of an index number is not an easy task. Various problems hamper the construction of index number such as; what should be the base year, which commodities should be included, how should the weights allocated to each commodity etc. These are some of the...

Fisher Ideal Price Index

The geometric mean of Laspeyre’s and Paasche’s price indices is called Fisher’s price Index. Fisher price index uses both current year and base year quantities as weight. This index corrects the positive bias inherent in the laspeyres index and the negative bias...

Laspeyres Price Index

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...