Index numbers are statistical measures designed to show changes in a variable or group of related variables with respect to time.

1. INDEX NUMBERPrice average
volume Expenditure base year
quantity Current Year
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2. Formulas
Methods
TypesIntroduction
Definition

3. Definition
“Index Number are statistical devices to measure the relative
Changes in the level of a phenomenon (Variable or Group of
Variables) with respect to time, geographical location or
Other Charterstics such as income, profession, etc.”
Price Relative:
Price Relative is the price in the current year (P1) expressed as the
percentage of the price in the base year (P0).
Quantity Relative:
It is the ratio of quantity of commodity in the current year (Q1)
Expressed as the percentage of the quantity in the base year (Q0)
Value Relative:
It is the ratio of value of commodity in the
Current year(V0) expressed as the percentage of the value in the base
year (V0)

4. Types Of Index Number
Price Index Number:
The Price index numbers measure the general change in the prices of
articles in the current period as compared to that of the base period .
It is donated by P
Quantity Index Numbers:
Quantity Index numbers study the relative change in the volume of
goods produced (Manufactured) or consumed or
Distributed. It id donated by Q
Value Index Numbers:
Value Index Numbers study the relative change in the total money
value ( Price Multiplied by quantity)of production
(Transaction). It is denoted by V
01
01
01

5. METHODS

6. Formula’s

11. CONSUMER PRICE INDES NUMBERS (CPI)
OR
COST OF LIVING INDEX NUMBER (CLI)

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