Unweighted Average of Relatives Index

In case of unweighted average of relatives, price relative of each commodity is first calculated and then average (mean, median or geometric mean) of these price relatives for all the commodities is taken. average of relatives can be calculated by taking arithmetic...

Weighted aggregate price index

The ratio of the sum of weighted prices of current and base time periods multiplied by 100 is called weighted aggregate price index. This index is calculated after allocating weights to each commodity on the basis of their relative importance. Weights of these...

Simple Aggregate Price Index

The method in which sum of prices of all the commodities in the current period is divided by the total prices in the base period is called unweighted aggregate index. Since simple aggregate index does not give relative importance to the commodities therefore it is...

Simple Price Index or Price Relative

Simple price index is a percentage ratio that represents a comparison for a single commodity. For example, let the price of a calculator is $60 in 2005 and $80 in 2006. To compare the two prices, the price of one of the time periods is fixed as 100 and in this case it...

Regression Line of X on Y

The line which expresses the trend of two observed values is called a regression line. For example if the sample data is given then the value of y corresponding to the given value of x can be estimated by the method of least squares. Now because the value of y is...

How to Calculate Rank Correlation

Rank correlation is used in a situation when the variable under consideration is not measurable e.g. intelligence, knowledge, experience, beauty etc. Such types of variables are judged by two different people or by two procedures. Therefore it is necessary to find the...