PPT - Index number | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year PDF Download

 Page 1


1. Meaning
2. Definition
3. Features
4. Steps or problems in the construction of 
Index Numbers
5. Notations used in Index Numbers
6. Types of index numbers
7. Methods of Constructing Index Numbers
8. Tests for ideal Index Numbers
9. Uses of Index Numbers
10.Limitations of Index Numbers
Page 2


1. Meaning
2. Definition
3. Features
4. Steps or problems in the construction of 
Index Numbers
5. Notations used in Index Numbers
6. Types of index numbers
7. Methods of Constructing Index Numbers
8. Tests for ideal Index Numbers
9. Uses of Index Numbers
10.Limitations of Index Numbers
It is a statistics which assigns a
single number to several individuals statistics in
order to quantify trends. Two or more time
periods are involved, one of which is the base
time period.
? In other words, Index numbers is a statistical
tool for measuring relative change in a group
of related variables over two or more
different times.
? Index numbers measure relative changes in the
price of a sum of representative data.
? Index Numbers are expressed in percentage.
Page 3


1. Meaning
2. Definition
3. Features
4. Steps or problems in the construction of 
Index Numbers
5. Notations used in Index Numbers
6. Types of index numbers
7. Methods of Constructing Index Numbers
8. Tests for ideal Index Numbers
9. Uses of Index Numbers
10.Limitations of Index Numbers
It is a statistics which assigns a
single number to several individuals statistics in
order to quantify trends. Two or more time
periods are involved, one of which is the base
time period.
? In other words, Index numbers is a statistical
tool for measuring relative change in a group
of related variables over two or more
different times.
? Index numbers measure relative changes in the
price of a sum of representative data.
? Index Numbers are expressed in percentage.
An Index time series is a list of
index numbers for two or more periods of
time, where each Index Numbers employs the
same base years.
Page 4


1. Meaning
2. Definition
3. Features
4. Steps or problems in the construction of 
Index Numbers
5. Notations used in Index Numbers
6. Types of index numbers
7. Methods of Constructing Index Numbers
8. Tests for ideal Index Numbers
9. Uses of Index Numbers
10.Limitations of Index Numbers
It is a statistics which assigns a
single number to several individuals statistics in
order to quantify trends. Two or more time
periods are involved, one of which is the base
time period.
? In other words, Index numbers is a statistical
tool for measuring relative change in a group
of related variables over two or more
different times.
? Index numbers measure relative changes in the
price of a sum of representative data.
? Index Numbers are expressed in percentage.
An Index time series is a list of
index numbers for two or more periods of
time, where each Index Numbers employs the
same base years.
? According to Maslow, “It is a numerical value
characterizing the change in complex economic
phenomena over a period of time or space.”
? According to John Rriffin, “Index Numbers are
used to measure changes over time in magnitudes
which are not capable of direct measurement.”
? In the words of Tuttle, “ An index number is a 
single ratio (usually in percentage)which measures 
the combined (i.e., averaged) change of several 
variables between two different times, places or 
situations.”
? In the words of Edge worth, “Index number shows 
by its variation the changes in a magnitude which 
is not susceptible either of a accurate 
measurement in itself or of direct valuation in 
practice.”
Page 5


1. Meaning
2. Definition
3. Features
4. Steps or problems in the construction of 
Index Numbers
5. Notations used in Index Numbers
6. Types of index numbers
7. Methods of Constructing Index Numbers
8. Tests for ideal Index Numbers
9. Uses of Index Numbers
10.Limitations of Index Numbers
It is a statistics which assigns a
single number to several individuals statistics in
order to quantify trends. Two or more time
periods are involved, one of which is the base
time period.
? In other words, Index numbers is a statistical
tool for measuring relative change in a group
of related variables over two or more
different times.
? Index numbers measure relative changes in the
price of a sum of representative data.
? Index Numbers are expressed in percentage.
An Index time series is a list of
index numbers for two or more periods of
time, where each Index Numbers employs the
same base years.
? According to Maslow, “It is a numerical value
characterizing the change in complex economic
phenomena over a period of time or space.”
? According to John Rriffin, “Index Numbers are
used to measure changes over time in magnitudes
which are not capable of direct measurement.”
? In the words of Tuttle, “ An index number is a 
single ratio (usually in percentage)which measures 
the combined (i.e., averaged) change of several 
variables between two different times, places or 
situations.”
? In the words of Edge worth, “Index number shows 
by its variation the changes in a magnitude which 
is not susceptible either of a accurate 
measurement in itself or of direct valuation in 
practice.”
? They are expressed in percentages.
? They are special types of averages.
? They measure the effect of change over a
period of time.