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# PPT 16 - Index Numbers CA Foundation Notes | EduRev

## Quantitative Aptitude for CA CPT

Created by: Wizius Careers

## CA Foundation : PPT 16 - Index Numbers CA Foundation Notes | EduRev

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CPT Section D Quantitative Aptitude, Chapter 16
Dr. N.V. Ravi
Page 2

CPT Section D Quantitative Aptitude, Chapter 16
Dr. N.V. Ravi
Introduction Involved in the construction of Index
Numbers
Construction of Index number
Methods of Index Numbers
Usefulness of Index Numbers
Page 3

CPT Section D Quantitative Aptitude, Chapter 16
Dr. N.V. Ravi
Introduction Involved in the construction of Index
Numbers
Construction of Index number
Methods of Index Numbers
Usefulness of Index Numbers
An index number is a ratio or an average of
ratios expressed as a percentage two or more
time periods are involved, one of which is base
time period.
The value of the base time period serves as the
standard point of composition
Page 4

CPT Section D Quantitative Aptitude, Chapter 16
Dr. N.V. Ravi
Introduction Involved in the construction of Index
Numbers
Construction of Index number
Methods of Index Numbers
Usefulness of Index Numbers
An index number is a ratio or an average of
ratios expressed as a percentage two or more
time periods are involved, one of which is base
time period.
The value of the base time period serves as the
standard point of composition
Selection of data
Selection of a Base Year
Type of Formula
Selection of Weights
The Data for Index Numbers
Choice of Variables
Page 5

CPT Section D Quantitative Aptitude, Chapter 16
Dr. N.V. Ravi
Introduction Involved in the construction of Index
Numbers
Construction of Index number
Methods of Index Numbers
Usefulness of Index Numbers
An index number is a ratio or an average of
ratios expressed as a percentage two or more
time periods are involved, one of which is base
time period.
The value of the base time period serves as the
standard point of composition
Selection of data
Selection of a Base Year
Type of Formula
Selection of Weights
The Data for Index Numbers
Choice of Variables
1
• Specialized Averages
2
• Measure the net change in a group
of related variables
3
• Measures the effect of changes
over a period of time
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