Index numbers are the statistical devises designed to measure the relative changes in the level of a certain phenomenon. They are known as specialized averages and are expressed in percentages. They measure the pressure of economic activities of the country. In this chapter we introduce the Index numbers, types of index numbers, and the computation methods of index numbers.
Types of Index numbers; methods of constructing index numbers; price relative of a commodity; Laspeyre’s method; Paasche’s method; Bowley’s method; Fisher’s method; Marshall’s method
The most common technique for characterizing a business or economic time series is to compute Index Numbers. An Index Number is a measure ...