by mbalectures | Jun 20, 2010 | Descriptive statistics

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 labor in selection of commodities. In some...
by mbalectures | Jun 20, 2010 | Descriptive statistics

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 is also called current year quantity weight...
by mbalectures | Jun 19, 2010 | Descriptive statistics

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 keeps pace with the cost of living. The importance of consumer price...
by mbalectures | Jun 19, 2010 | Descriptive statistics

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 time. For example changes may happen due to disappearance of...
by mbalectures | Jun 19, 2010 | Descriptive statistics

The index which measures the change in prices of goods and services purchased by specific class or group of people for a particular period of time is called consumer price index. Since the income level and living pattern of households differ therefore it is necessary...
by mbalectures | Jun 19, 2010 | Descriptive statistics

In case of average of weighted relatives, price relative of each commodity is multiplied by the weight of that commodity and the sum of these products is divided by the sum of weights of all the commodities. Weighted average-of-relatives index can be calculated by...