# Chapter 2 - Statistical Techniques Flashcards Preview

## AAT Level 4 - Budgeting > Chapter 2 - Statistical Techniques > Flashcards

Flashcards in Chapter 2 - Statistical Techniques Deck (6)
1
Q

What is an index and how is it created?

A

An index measures the average change in value of a group of items. This can be either values or quantities.

(Current period’s figure / Base period’s figure) x 100

2
Q

What is the formula to restate a figure?

A

(Index for base period / Index for current period) x current figure

3
Q

What is the formula to forecast figures using index numbers?

A

(Index for period converting TO / Index for period converting FROM) x historical figure

4
Q

Using multiple indices

A

Use the quantity index to forecast and then apply the price index.

5
Q

Trend analysis

A

Step 1
Identify the time periods ie three or four point moving average

Step 2
Calculate the averages

Step 3
Calculate any seasonal variations

Step 4
Use the trend and seasonal variations to forecast future figures

6
Q

How is the average trend calculated?

A

Take the difference between the first and last figures of the trend and divide by the number of periods less 1