Question

distinguish between simple and weighted index numbers​

Answer 1

Answer:

Simple index numbers is a method of constructing an index number in which every commodity is given equal importance. Weighted index numbers is a method of constructing an index number in which suitable weights are assigned to various commodities. ... It is the easiest method for constructing index numbers.

Answer 2

Distinguish between simple and weighted index numbers​

• Every commodity is given equal weight when creating an index number using simple index numbers. Weighted index numbers are a way to create an index number where appropriate weights are given to different commodities.
• a numerical index where the constituent components are given weights based on some method that reflects their relative importance.
• The ratio of two values reflecting the same variable, measured in two separate contexts or across two different time periods, is known as a simple index number. For instance, a straightforward price index number will show the relative difference in price between the present period and a reference period.
• The simplest way to determine index numbers is by using this formula. This method involves dividing the sum of the current year's prices for various commodities by the total of the base year, then multiplying the quotient by 100. Symbolically.
• After giving each product an appropriate weight, the weighted index number is a weighted average of all the products.

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