by kasi | Jun 23, 2010 | Macro-Economics
Inflation is a situation where general price level is rising continuously indicating disequilibrium between demand and supply of goods at current prices. Causes of inflation vary from one country to another, thus different types of inflation exist at different places... by kasi | Jun 23, 2010 | Macro-Economics
Several economists have described the inflation in different ways. For example Coulborn define inflation as “Too much money chasing too few goods.” According to Crowther “Inflation is a state of economy in which the value of money is falling, i.e. prices are rising.”... by kasi | Jun 22, 2010 | Descriptive statistics
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... by kasi | Jun 21, 2010 | Finance
The shareholders buy shares with the expectations of receiving dividends and increase in the value of the shares. A conscious investor buys shares when they are undervalued and sell them when they are overvalued. Under valuation means the shares’ true value is more... by kasi | Jun 21, 2010 | Descriptive statistics
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... by kasi | Jun 20, 2010 | Finance
Just like a person working for some one expects remuneration or a landlord expects rent from tenant, the provider of funds also expects return. Two types of funds providers exist. One who takes the risk and provides funds for sharing profit or loss. The average... by kasi | Jun 20, 2010 | Accounting
Average a simple but important tool for decision making which is used by almost every individual, businessman, and even institutions on daily basis. It would be hard to find a person on this planet who ever have not been used averages to know daily, monthly, or yearly... by kasi | Jun 20, 2010 | Finance
In general terms financial market is a mechanism of delivering savings from the households, governments, and corporations to the users of these funds. Financial markets and financial assets exist in an economy because the savings of various individuals and... by kasi | Jun 20, 2010 | Descriptive statistics
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... 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...