Weighted aggregate price index

The ratio of the sum of weighted prices of current and base time periods multiplied by 100 is called weighted aggregate price index. This index is calculated after allocating weights to each commodity on the basis of their relative importance. Weights of these...

Simple Aggregate Price Index

The method in which sum of prices of all the commodities in the current period is divided by the total prices in the base period is called unweighted aggregate index. Since simple aggregate index does not give relative importance to the commodities therefore it is...

Simple Price Index or Price Relative

Simple price index is a percentage ratio that represents a comparison for a single commodity. For example, let the price of a calculator is $60 in 2005 and $80 in 2006. To compare the two prices, the price of one of the time periods is fixed as 100 and in this case it...

Regression Line of X on Y

The line which expresses the trend of two observed values is called a regression line. For example if the sample data is given then the value of y corresponding to the given value of x can be estimated by the method of least squares. Now because the value of y is...

How to Calculate Rank Correlation

Rank correlation is used in a situation when the variable under consideration is not measurable e.g. intelligence, knowledge, experience, beauty etc. Such types of variables are judged by two different people or by two procedures. Therefore it is necessary to find the...

How to Calculate Correlation Coefficient

Correlation measures the degree of interdependence (association) between two variables. If two variables are so related that an increase or decrease of one is found in connection with increase or decrease of the other, then the two variables are said to be correlated....

Measures of Dispersion

Characteristic of data which describes the extent to which the observations vary among themselves is called dispersion. In other words it is the scatter or spread of the values from one another or from some common value. It is important to calculate the dispersions...

What are Measures of Dispersion

Characteristic of data which describes the extent to which the observations vary among themselves is called dispersion. In other words it is the scatter or spread of the values from one another or from some common value. It is important to calculate the dispersions...

How to Calculate Standard Deviation

Standard deviation is the most widely used measure of dispersion. It is defined as the positive square root of sum of the square deviation of the variable from its mean divided by total number of observations. In other words it is the positive square root of a...
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