Index Numbers Flashcards
1
Q
Index numbers
A
Statistical measures of change
2
Q
Base year
A
An index starts in a given year, called a base year which is given an index number of 100
3
Q
Percentage change in index numbers
A
In comparison to the base year, any change to that index number in the next or previous year represents a % change e.g. an index of 112 is a 12% rise from the base year. If there is no base year, , we cant just look at the difference to determine percentage change.
4
Q
Index numbers formula
A
(current year price/Base year price)x100 e.g. (1101/1127) x 100=98
5
Q
Percentage change
A
(new-old/old)x 100
