Index number definition is - a number used to indicate change in magnitude (as of cost or price) as compared with the magnitude at some specified time usually taken as 100. index number - a number or ratio (a value on a scale of measurement) derived from a series of observed facts; can reveal relative changes as a function of time indicator , index , indicant fact - a statement or assertion of verified information about something that is the case or has happened; "he supported his argument with an impressive array of facts" Index numbers may be classified in terms of the variables that they are intended to measure. In business, different groups of variables in the measurement of which index number techniques are commonly used are (i) price, (ii) quantity, (iii) value and (iv) business activity. An index number is a figure reflecting price or quantity compared with a base value. The base value always has an index number of 100. The index number is then expressed as 100 times the ratio to the base value.
Watch this video lesson to learn what index numbers are. Learn how useful this statistical number is in the real world. You will also see some index numbers that we use and probably hear every day.
Index numbers are meant to study changes in the effects of factors which cannot be measured directly. According to Bowley, “Index numbers are used to measure Jun 24, 2013 Samuelson and Swamy (1974, p. 566) notes that Fisher, by making an index number satisfy certain properties of real numbers, sought to make it a number or ratio (a value on a scale of measurement) derived from a series of observed facts; can reveal relative changes as a function of time. Jun 18, 2013 A chain index is an index number in which the value of any given period is related to the value of its immediately preceding period (resulting in The market value for each stock is calculated by multiplying its price by the number of shares included in the index, and each stock's weight in the index is
There are four main approaches to bilateral index number theory: the fixed basket, stochastic, test, and economic approaches. The paper reviews the
Definition of index number in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is index number? Meaning of index number as