Lec#1 INTRODUCTION TO INDEX NUMBERS | TYPES OF INDEX NUMBERS IN STATISTICS for B.Com & BBA
In this video you will learn about INDEX NUMBERS in Statistics
LECTURE #1
1Q. What is an INDEX NUMBER?
2Q. What are the uses of INDEX NUMBER in Statistics ?
3Q. Different Types of INDEX NUMBERS
1Q. What is an INDEX NUMBER?
An index number is the MEASURE OF CHANGE IN A VARIABLE (or group of variables) OVER TIME or PLACE TO PLACE.
INDEX NUMBERS is a specific ratio tool which makes compassion more easy
Index numbers are stated as a PERCENTAGE OF A BASE FIGURE.
Index numbers are the SPECIALIZED AVERAGES that measure the change in level of a phenomenon.
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2Q. What are the uses of INDEX NUMBER in Statistics ?
It is typically used in ECONOMICS to measure trends in a wide variety of areas including: STOCK MARKET PRICES, COST OF LIVING, INDUSTRIAL or AGRICULTURAL PRODUCTION, etc.
Index numbers are one of the most used STATISTICAL TOOLS IN ECONOMICS.
The index numbers are known as ECONOMIC BAROMETER or ECONOMIC INDICATORS since they help in understanding the changes in economic conditions of the society.
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3Q. Different Types of INDEX NUMBERS
There are TWO TYPES OF INDEX NUMBERS, they are
1. UNWEIGHTED/SIMPLE INDEX NUMBERS
Under unweighted index numbers, ALL ITEMS ARE GIVEN EQUAL IMPORTANCE and EQUAL
WEIGHT IS ASSIGNED TO ALL.
2. WEIGHTED INDEX NUMBERS.
The various items that constitute the index numbers are NOT EQUALLY IMPORTANT.
Thus WEIGHTS are ASSIGNED BASED ON RELATIVE IMPORTANCE OF THE INDEXES
All INDEX numbers are defined as either PRICE INDEX NUMBER or QUANTITY INDEX NUMBER or VALUE INDEX NUMBER
Price Index
P0 Base Year Price
P1 Current Year Price
Quantity Index
q0 Base Year Quantity
q1 Current Year Quantity
Value Index
V0 Base Year Value
V1 Current Year Value
LECTURE #1
1Q. What is an INDEX NUMBER?
2Q. What are the uses of INDEX NUMBER in Statistics ?
3Q. Different Types of INDEX NUMBERS
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