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... by kasi | Jun 19, 2010 | Descriptive statistics
The index which measures the change in prices of goods and services purchased by specific class or group of people for a particular period of time is called consumer price index. Since the income level and living pattern of households differ therefore it is necessary... by kasi | Jun 19, 2010 | Descriptive statistics
In case of average of weighted relatives, price relative of each commodity is multiplied by the weight of that commodity and the sum of these products is divided by the sum of weights of all the commodities. Weighted average-of-relatives index can be calculated by... by kasi | Jun 18, 2010 | Descriptive statistics
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... by kasi | Jun 18, 2010 | Descriptive statistics
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... by kasi | Jun 18, 2010 | Descriptive statistics
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... by kasi | Jun 18, 2010 | Descriptive statistics
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...