CH 8 Index Numbers 2
CH 8 Index Numbers 2
CH 8 Index Numbers 2
Introduction to
index numbers
PRESENTED BY-
Poonam Dua
Amend Education Academy
www.amendeducation.com
Topic
Introducation
• An index number is an economic data
figure reflecting price or quantity compared
with a standard or base value. The base
usually equals 100 and the index number
is usually expressed as 100 times the ratio
to the base value..
P01 = PV
∑
V
∑
Where- P = PP01
×100
P=Price relative
V=Value weights=
p0 q0
Weighted average of price
relative
Value index
numbers
A chain index is an index number in which the value of any given
period is related to the value of its immediately preceding period (resulting in an
index for the given period expressed against the preceding period = 100); this is
distinct from the fixed-base index, where the value of every period in a time
series is directly related to the same value of one fixed base period.
Calculate Chain Index Number for the following