# Frequency Distribution Table

Now we know about class interval, class limits, size of class interval, frequency distribution, class boundaries and mid class. On the basis of all these concepts, we are now able to construct a frequency distribution…

# Quartiles, Deciles and Percentiles (Grouped Data)

When data is arranged in ascending or descending order, it can be divided into various parts by different values such as quartiles, deciles and percentiles. These values are collectively called quantiles and are the extension…

# How to Calculate an Index Number

An index number is a percentage value designed to measure the over all change in a variable, or in a group of related variables, by reference to a base value. In other words it is…

# Problems in the Construction of Index Numbers

The construction of an index number is not an easy task. Various problems hamper the construction of index number such as; what should be the base year, which commodities should be included, how should the…

# Fisher Ideal Price Index

The geometric mean of Laspeyre’s and Paasche’s price indices is called Fisher’s price Index. Fisher price index uses both current year and base year quantities as weight. This index corrects the positive bias inherent in…

# Laspeyres Price Index

If the quantities of base time period are taken as weights, the weighted aggregative price index is called Laspeyres price index. This method of calculating price index is also called base year quantity weight method….

# Marshall Edgeworth Price Index

If the weights are taken as the arithmetic mean of base and current year quantities, then the weighted aggregative index is called marshal edgeworth index. Like Fisher’s index, Marshall edgeworth index also requires too much…

# paasche’s Price Index

If the quantities of current time period are taken as weights, the weighted aggregative index is called Passche’s Price Index. Since Passche’s Price Index is calculated by taking current year quantities as base therfore it…

# Consumer Price Index Use

Consumer price index compares the price changes with changes in income, wage rates, retail sales etc. Consumer price index is also known as cost of living index and can be used to know whether income…

# Shifting of Base Year

Most index numbers are subjected to revision from time to time due to different reasons. In most cases it becomes compulsory to change the base year because numerous changes took place with the passage of…