Index Numbers

index physiques game Introduction: Index numbers are meant to break down the change in the effects of such factors which cannot be measurable directly. According to Bowley, Index numbers are used to mo sackary standard the changes in almost quantity which we cannot observe directly. For example, changes in wrinkle activity in a country are not capable of direct saloonment but it is assertable to study relative changes in business activity by studying the variations in the values of some such factors which tinge business activity, and which are capable of direct measurement. Index numbers are commonly used statistical device for quantity the combined fluctuations in a group related variables. If we decadeder to canvass the price level of consumer items today with that prevalent ten years ago, we are not interested in compare the prices of only one item, but in comparing some sort of average price levels. We may wish to compare the present agricultural achievement or industrial production with that at the time of independence. here(predicate) again, we have to consider either items of production and each item may have undergone a different fractional increase (or even a decrease). How do we obtain a composite measure?

This composite measure is provided by index numbers which may be delimit as a device for combining the variations that have hail in group of related variables over a spot of time, with a view to obtain a figure that represents the net result of the change in the constitute variables. ndex numbers may be classified in terms of the variables that they are think to measure. In business, different groups of variables in the measurement of which index number techniques are commonly used are (i) price, (ii) quantity, (iii) value and (iv) business activity. Thus, we have index of wholesale prices, index of consumer prices, index of industrial output, index of value of exports and index of business activity, etc. Here we shall be mainly interested in index numbers... If you fate to get a full essay, order it on our website: Orderessay

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