Question

Define index number . Explain its utility and importance.

Answer 1

Index numbers are used to measure the changes in one or more variable over a period of time. These numbers are stated as a percentage of a base figure. Index numbers are the specialized averages that measure the change in level of a phenomenon. They measure the effect of changes over a period of time.

Answer 2

Index numbers are used to measure the changes in one or more variable over a period of time. These numbers are stated as a percentage of a base figure. Index numbers are the specialized averages that measure the change in level of a phenomenon. They measure the effect of changes over a period of time.