WEEK 4 - INDEX NUMBERS

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  • Created by: jf00632
  • Created on: 18-01-19 17:24
How do you calculate the index number?
price/base x 100
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What does the steel ndex number for 2014, 2015, 2016 mean?
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How do you calculate the % change between 2 numbers?
1. Bigger number - smaller number (300-220=80) 2. Difference/smaller number x 100 (80/200x100)
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What does a weighted index take into considertion and why?
Weghted index takes into consideration the quantities that individuals actually buy. Without including quantities there is no way of traking how important price changes are in terms of how and what individuals buy.
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How do you calculate base weighted price index?- first step
Step 1- Bq x cp
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What is step 2 to calculate the base weiighted price index?
Add it all together for that year
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What is step 3 to calculate base weighted quantity inde
Current total / base total x 100 = index
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How do you calculate current weighted price index? - first step
Current quantity x current price
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How do you calculate current weighted price index? - second step step
current quantity x base price
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How do you calculate current weighted price index? - third step
these two answers divided by each other x 100 = index number
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Why is it useful to use weightings when calculating a price index?
Weighting takes account of quantities bought. Useful for showing the relative importance of price changes in a basket of goods. if a typical family buys a lot of an item and that item has changed price this can have a large effect on spending pattern
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Card 2

Front

What does the steel ndex number for 2014, 2015, 2016 mean?

Back

LOOK AT NOTES IN FOLDER

Card 3

Front

How do you calculate the % change between 2 numbers?

Back

Preview of the front of card 3

Card 4

Front

What does a weighted index take into considertion and why?

Back

Preview of the front of card 4

Card 5

Front

How do you calculate base weighted price index?- first step

Back

Preview of the front of card 5
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