How Do You Create An Index Number?

In constructing an index number, the following steps should be noted:

  1. Purpose of the Index Number:
  2. Selection of Commodities:
  3. Selection of Prices:
  4. Selection of an Average:
  5. Selection of Weights:
  6. Selection of the Base Period:
  7. Selection of Formula:

Why do we need an index number Class 11?

Question 7: Why do we need an index number? Index numbers measure and compare prices of different commodities with the help of Wholesale Price Index (WPI). It is widely used to measure the level of inflation in an economy. Index numbers help to assess the living standard of people.

What does a CPI of 100 mean?

2 So a CPI reading of 100 means that inflation is back to the level that it was in 1984, while readings of 175 and 225 would indicate a rise in the inflation level of 75% and 125% respectively.

What are the different methods of constructing index numbers?

In general, construction of index number is further available for the division in two parts: Simple and Weighted. Furthermore, the simple method is classified into simple aggregative and simple relative. Similarly, the weighted method is classified into weighted aggregative and weighted average or relative.

What are limitations of index number?

They are simply rough indications of the relative changes. The choice of representative commodities may lead to fallacious conclusions as they are based on samples. There may be errors in the choice of base periods or weights, etc.

How do you create an index number?

In constructing an index number, the following steps should be noted:

  1. Purpose of the Index Number:
  2. Selection of Commodities:
  3. Selection of Prices:
  4. Selection of an Average:
  5. Selection of Weights:
  6. Selection of the Base Period:
  7. Selection of Formula:

Why Fisher's index number is called ideal?

Fisher's index lies between the other two indexes. It is referred to as an “ideal” index because it correctly predicts the expenditure index and it satisfies both the time reversal test as well as factor reversal test.

How do you read index numbers?

An index number of 102 means a 2% rise from the base year, and an index number of 98 means a 2% fall. Using an index makes quick comparisons easy. For example, when comparing house prices from the base year of 2012, an index number of 110 in 2013 indicates an increase in house prices of 10% in 2013.

What are the main uses of index number?

The primary purposes of an index number are to provide a value useful for comparing magnitudes of aggregates of related variables to each other, and to measure the changes in these magnitudes over time. Consequently, many different index numbers have been developed for special use.

What is meant by computer aptitude?

Computer Aptitude – It is an application of computer knowledge that helps in solving logical problems related to computers.

What can I do after FSC?

Let's break the ice and make everything more clear to you.

  1. B.Sc. ( Bachelor of Science)
  2. Bachelor of Medicine and Bachelor of Surgery (M.B.B.S)
  3. Doctor Of Pharmacy (D.Pharmacy)
  4. Doctor of Physical Therapy (DPT)
  5. Doctor of Veterinary Medicine (DVM)
  6. Bachelor of Dental Surgery (BDS)
  7. Medical Laboratory Technology.
  8. Biotechnology.

Why do we need to study the beginning of the universe?

Through exploration, we have discovered new continents, found cures to diseases, advanced in technology, communication and much more. Studying the origins of the Universe and exploring it helps us build our civilization.

What is sludge and how it is treated?

Sludge is the human waste that is present in the waste water which is left during the sewage treatment. It is used in the production of biogas and manure. This is because it is an organic waste. Treatment: Sludge is collected and decomposed using an anaerobic bacterium.

Who prepares Union Budget?

The budget division of the department of economic affairs (DEA) in the finance ministry is the nodal body responsible for producing the budget.

When steam flows through a nozzle?

The steam nozzle is a passage of varying cross-section by means of which a part of the enthalpy of steam is converted into kinetic energy as the steam expands from a higher pressure to a lower pressure. Therefore, a nozzle is a device designed to increase the velocity of steam.

What are the types of electrical?

There are two types of Electricity, Static Electricity and Current Electricity. Static Electricity is made by rubbing together two or more objects and making friction while Current electricity is the flow of electric charge across an electrical field.

What are disadvantages of Spanning Tree Protocol?

One of the drawbacks of an STP is that in blocking redundant ports and paths, a spanning tree reduces the aggregate available network bandwidth significantly. Additionally, STP can result in circuitous and suboptimal communication paths through the network, adding latency and degrading application performance.

Can Google solve math questions?

For this, all you have to do is type the math problem (the full problem) in the Search button. Or, you can use Google Lens and hover it over the math problem in your book or copy. Once Google captures the problem, you will be shown a series of steps that you can follow to solve the problem.

Which nozzle is used in rocket engines?

The de Laval nozzle was originally developed in the 19th century by Gustaf de Laval for use in steam turbines. It was first used in an early rocket engine developed by Robert Goddard, one of the fathers of modern rocketry.

What is the importance of latitude and longitude?

Latitude and longitude make up the grid system that helps us identify absolute, or exact, locations on the Earth's surface. You can use latitude and longitude to identify specific locations. Latitude and longitude are also helpful in identifying landmarks.

What are the properties of amines?

Physical Properties of Amines

  • The lower aliphatic amines are gaseous in nature.
  • Primary amines with three or four carbon atoms are liquids at room temperature whereas higher ones are solids.
  • Aniline and other arylamines are generally colourless.
  • Lower aliphatic amines can form hydrogen bonds with water molecules.