Index numbers Flashcards
1
Q
What are index numbers
A
Describe the changes in cost or price from year to year
2
Q
What’s the formula for index numbers
A
(cost in year n / cost in base year) * 100
3
Q
What’s the formula for cost in year n
A
cost in base year * (new index number / 100)
4
Q
What does chain base index numbers compare
A
This years values with last years values
5
Q
What’s the formula for chain base index numbers
A
(value this year / value last year) * 100
