Question

what is index number

Answer 1

In economics and finance, an index is a statistical measure of changes in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment. 

Answer 2

Answer:

What is Index Number?

• Index number is a statistical tool for measuring changes in the magnitude of a group of related variables.

Features of Index number:

1. Index number are averages like mean, median & mode and it helps us to compare 2 or more series or years. It measures changes b/w two variables over a time.
2. Index number are expressed in %: The changes in magnitude of a group are expressed in term of % which are independent of the units of measurement. But % sign is never used.
3. Index number measure the effect of changes in relation to time or place.
4. Index number measure the change not capable of direct measurement.