Distinguish between price index and quantity index.
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Quantity Index Number is also known as Weighted Index Number.Price Index Number takes into account the prices of the commodity of the base year as well as of the current year. Quantity Index takes into consideration the weights of goods assigned according to the quantity.
Quantity Index Number is also known as Weighted Index Number.Price Index Number takes into account the prices of the commodity of the base year as well as of the current year. Quantity Index takes into consideration the weights of goods assigned according to the quantity.
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A price index is a standardized average while the quantity index is a measure of time series.
- A price index is a standardized average of the price relative during a given time period for a given class of goods or services in a given region. It is a statistics designed to help measure how these price relatives, taken as a whole, vary across periods of time or geographical locations.
- Quantity index is a statistical time series measure designed to help compare how the output of certain types of goods and/or services, taken as a whole, varies across periods or geographical locations.
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