Quantity Index Numbers, Business Mathematics and Statistics

# Quantity Index Numbers, Business Mathematics and Statistics - Business Mathematics and Statistics - B Com

QUANTITY INDEX NUMBERS

Just as the price index number measures the changing prices of the goods so a quantity index number measures the change in quantity/volume of the goods produced, sold or consumed. The method of construction of quantity index number are similar to the methods discussed above in the context of price index. The only difference is that the quantity index formula are obtained from the corresponding price index formula by an interchange of p by q & q by p.
Thus the following list of formulae can be derived :

Unweighted Index : Simple Aggregative Method

Unweighted Index : Simple Average of Quantity Relative Method –

When Arithmetic Mean is used for averaging the relatives

– When Geometric Mean is used for averaging the relatives

Weighted Index : Simple Aggregative Method

– Laspeyres’ Method

– Paasche’s Method

– Dorbish & Bowley’s Method

– Fisher ‘ideal’ Method

– Marshall-Edgeworth Method

— Kelly’s Method

Weighted Index : Weighted Average of Relative Method

– When Arithmetic Mean is used for averaging

where

– When Geometric Mean is used for averaging

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## FAQs on Quantity Index Numbers, Business Mathematics and Statistics - Business Mathematics and Statistics - B Com

 1. What are Quantity Index Numbers?
Ans. Quantity Index Numbers are statistical measures used to compare the physical quantities of a particular item or group of items over time. They provide a way to track changes in the quantity of goods produced, consumed, or traded.
 2. How are Quantity Index Numbers calculated?
Ans. Quantity Index Numbers are calculated by dividing the current quantity of a particular item by the base quantity and multiplying the result by 100. This calculation is done for each time period being compared, allowing for the comparison of quantities over time.
 3. What is the significance of Quantity Index Numbers in business mathematics?
Ans. Quantity Index Numbers play a crucial role in business mathematics as they help in analyzing and understanding the changes in the physical quantities of goods or services. They provide insights into production trends, consumption patterns, and trade volumes, which are essential for making informed business decisions.
 4. How do Quantity Index Numbers differ from Price Index Numbers?
Ans. Quantity Index Numbers and Price Index Numbers are both used to measure changes, but they focus on different aspects. Quantity Index Numbers measure the changes in physical quantities, while Price Index Numbers track changes in prices. By combining both, we can analyze changes in the value of goods or services.
 5. Can Quantity Index Numbers be used to compare the quantities of different items?
Ans. Yes, Quantity Index Numbers can be used to compare the quantities of different items. By calculating and comparing the index numbers for different items, we can assess the changes in their respective quantities over time. This allows for a comprehensive analysis of various products or services and helps in identifying trends and patterns.

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