Page 1 - Home Assignment-Index No
P. 1

SAI INTERNATIONAL SCHOOL


                                            Statistics for Economics

                                                       Class-XI


               MODULE-68




               Statistics for Economics -Index No.






















               There are two methods of computing the index numbers:
               (a) Simple index number and

               (b) Weighted index number.
               Simple index number again can be constructed either by – (i) Simple
               aggregate method, or by (ii) simple average of price relative’s method.
               Similarly, weighted index number can be constructed either by (i)
               weighted aggregative method, or by (ii) weighted average of price

               relative’s method. The choice of method depends upon the availability
               of data, degree of accuracy required and the purpose of the study.
               Construction of Price Index Numbers (Formula and Examples):

               Construction of price index numbers through various
               methods can be understood with the help of the following
               examples:
               1. Simple Aggregative Method:
   1   2   3   4