Index Numbers Quiz

Index numbers are a statistical tool used to measure relative change in a group of related variables over two or more different times. They focus on the relative change in a count or measurement over time, and are used to measure the change in a variable with respect to time. Two variables often considered in this analysis are price and quantity. Index numbers show the count or measurement as a percentage of the comparable count or measurement in a base period.

With the aid of index numbers, the average price of several articles in one year may be compared with the average price of the same quantity of the same articles in a number of different years. This comparison can be made by using the index numbers for the respective years.

Official statistics contain index numbers for quantities such as food prices, clothing prices, housing, wages, and other similar variables.

<p>The base period in index numbers is arbitrary but serves as a reference point for comparison. It is used to measure the change in a variable with respect to time, and all other time periods are compared to this base period.</p> Signup and view all the answers

<p>Index numbers often analyze the relationship between price and quantity. They measure the change in the count or measurement of a variable, such as price or quantity, as a percentage of the comparable count or measurement in a base period.</p> Signup and view all the answers