CBSE 11 Statistics for Economics | 7. Index Numbers by Pavan | Learn Smarter
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7. Index Numbers

Index numbers are essential statistical tools used to measure relative changes in a grouping of related variables, often focusing on price changes over time. The chapter discusses various index numbers, including the consumer price index (CPI), wholesale price index (WPI), and industrial production index (IIP), along with methods for their calculation and interpretation. Emphasis is placed on the importance of choosing the right base year and weights for accurate representation of economic trends.

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Sections

  • 7

    Index Numbers

    This section introduces index numbers as statistical tools for measuring changes in groups of related variables, like prices and quantities.

    Learning Practice

  • 7.1

    Introduction

    This section introduces index numbers as statistical tools for measuring changes in groups of related variables, like prices and quantities.

    Learning Practice

  • 7.2

    What Is An Index Number

    An index number is a statistical tool used to measure changes in a group of related variables, commonly employed to analyze price fluctuations over time.

    Learning Practice

  • 7.3

    Construction Of An Index Number

    This section explains how index numbers are constructed to measure changes in a group of related variables, specifically focusing on price index numbers.

    Learning Practice

  • 7.3.1

    Example 1: Calculation Of Simple Aggregative Price Index

    This section introduces the concept of index numbers, particularly focusing on the calculation of simple aggregative price indices and their limitations.

    Learning Practice

  • 7.3.2

    The Aggregative Method

    This section covers the concept of index numbers, their types, methods of calculation, and significance in summarizing economic data.

    Learning Practice

  • 7.3.3

    Example 2: Calculation Of Weighted Aggregative Price Index

    This section explains the calculation of weighted aggregative price indices, illustrating their utility in accurately measuring price changes across different commodities.

    Learning Practice

  • 7.3.4

    Method Of Averaging Relatives

    This section explains the method of averaging relatives in constructing index numbers, highlighting its utility in determining price changes over time.

    Learning Practice

  • 7.4

    Some Important Index Numbers

    This section explores key index numbers that track changes in economic variables, highlighting their meaning, usage, calculation methods, and limitations.

    Learning Practice

  • 7.4.1

    Consumer Price Index

    The Consumer Price Index (CPI) is a vital economic indicator tracking changes in the overall price level of a fixed basket of goods and services over time, reflecting the cost of living experienced by consumers.

    Learning Practice

  • 7.4.2

    Wholesale Price Index

    The Wholesale Price Index (WPI) measures the average change in prices of a basket of goods at the wholesale level, providing insights into inflation dynamics in the economy.

    Learning Practice

  • 7.4.3

    Index Of Industrial Production

    The section discusses index numbers, specifically focusing on the Index of Industrial Production (IIP) and its significance in measuring economic performance.

    Learning Practice

  • 7.4.4

    Sensex

    The Sensex is a key stock market index in India that tracks the performance of 30 major stocks listed on the Bombay Stock Exchange (BSE).

    Learning Practice

  • 7.4.5

    Human Development Index

    The Human Development Index (HDI) is a composite statistic that measures a country's social and economic development based on health, education, and income.

    Learning Practice

  • 7.5

    Issues In The Construction Of An Index Number

    This section addresses key considerations and challenges in constructing index numbers, emphasizing the importance of selecting appropriate data and methodologies.

    Learning Practice

  • 7.6

    Index Number In Economics

    This section explains index numbers, their construction, and relevance in measuring economic changes.

    Learning Practice

  • 7.6.1

    Where Can We Get These Index Numbers?

    This section discusses where to obtain various index numbers critical for economic analysis, including their significance and limitations.

    Learning Practice

  • 7.7

    Conclusion

    This section provides a summary of index numbers, their significance, and the methodologies for interpreting them.

    Learning Practice

References

NCERT Study Material

Class Notes

Memorization

What we have learnt

  • An index number is a statis...
  • There are several formulae ...
  • The choice of formula large...

Final Test

Revision Tests