PPT presentation on Index Numbers, It's meaning, characteristics and uses.

1. INDEX NUMBERS, ITS MEANING, CHARACTERISTICS AND USES.
PREPARED BY RAGHUANTH

2. WHAT ARE INDEX NUMBERS?
 An Index Number is a number which is used to measure
the level of a certain phenomenon as compared to the
level of the same phenomenon at some standard period.
 It is a statistical device for comparing the general level of
magnitude of a group of related variables in two or more
situations.
 It is a number which indicates the change in magnitude.

3. CHARACTERISTICS OF INDEX NUMBERS
 Index numbers are specialized averages
- Averages : same units; Index Numbers : different units
 Two or more time periods are involved, one of
which is the base time period
 They are expressed in percentage - To show the extent
of change but no need to use % sign
 Index numbers measure changes not capable of
direct measurement - Used to study relative change
 Basis of comparison
- over a time or between places etc.
 Universal Application

4. Uses of Index Numbers
 Help to measure the relative change
 Act as Good guide
 Economic parameters
 They are the wage adjuster
 Helps in comparison
 Compare the standard of living
 Help in formulating policies
 Index numbers measure the purchasing power of money
 Helpful in determining future trend