Question

Identify and explain the following concepts:

Gopal collected information about output of rice, wheat, cotton and jowar produced in 2016 and 2020 and derived Index Number.

Answer 1

Index Number

Explanation:

Gopal collected data of output of rice, wheat, cotton and jowar for two different years (2016 and 2020) and calculated an Index Number. An index number is a statistical tool used to measure relative changes in a variable or group of variables over time. It helps compare the level of production between one year and another.