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State the uses of Index Number

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प्रश्न

State the uses of Index Number

योग
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उत्तर

The uses of Index number are as given below:

(1) Index number is an important tool for formulating decision and management p policies.

(2) It helps in studying the trends and tendencies.

(3) It determines the inflation and deflation in an Economy.

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अध्याय 9: Applied Statistics - Exercise 9.2 [पृष्ठ २१९]

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सामाचीर कलवी Business Mathematics and Statistics [English] Class 12 TN Board
अध्याय 9 Applied Statistics
Exercise 9.2 | Q 2 | पृष्ठ २१९

संबंधित प्रश्न

______ : Base year prices :: P1 : Current year prices.


Features of index numbers:

  1. It is useful in framing suitable economic policies.
  2. It is useful to present financial data in real terms
  3. Index numbers are statistical devices.
  4. Index numbers are specialized averages.

Index number which is computed from a single variable called is a ______.


Assertion (A): Index numbers are statistical devices.

Reasoning (R): Index numbers measure only changes in the price level over a period of time.


Identify & explain the concept from the given illustration.

Agricultural Research Institute constructed an index number to measure changes in the production of raw cotton in Maharashtra during the period 2015-2020.


Mention the classification of Index Number


Using Fisher’s Ideal Formula, compute price index number for 1999 with 1996 as base year, given the following:

Year Commodity: A Commodity: B Commodity: C
Price (Rs.) Quantity (kg) Price (Rs.) Quantity (kg) Price (Rs.) Quantity (kg)
1996 5 10 8 6 6 3
1999 4 12 7 7 5 4

Choose the correct alternative:

Most commonly used index number is:


Choose the correct alternative:

While computing a weighted index, the current period quantities are used in the:


An Enquiry was made into the budgets of the middle class families in a city gave the following information.

Expenditure Food Rent Clothing Fuel Rice
Price(2010) 150 50 100 20 60
Price(2011) 174 60 125 25 90
Weights 35 15 20 10 20

What changes in the cost of living have taken place in the middle class families of a city?


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