SSC Online Preparation: Statistics - Study24x7
Social learning Network
study24x7

Default error msg

Login

New to Study24x7 ? Join Now
Already have an account? Login
googlePlay app_img

SSC Online Preparation: Statistics

Updated on 15 February 2020
study24x7
Harshit Verma
7 min read 2 views
Updated on 15 February 2020
Share this article
Copy Link Link Copied
NAT Banner



SSC online notify its vacancies every year. 


The candidates prepare for SSC Examination through online test and keep

practising their conceptual abilities.


SSC Online Preparation: Index Number

The index number is a technique in statistics to measure changes in the economic variable or variables concerning time. It is used in economics to measure trends in areas like the stock market, money market, export, import, etc.

Characteristics of Index Number:

· It measures the change in the dataset.

· These measures change over a while.

· These are particular average.

· Index numbers can help to weigh factors in a theoretical basis.

· This technique is used in comparisons of different datasets over time.

Types of Index Number:

· Simple Index Number: This is constructed for a single variable or object only.

· Composite Index Number: This is constructed for multiple different items. It is constructed by measuring an average relative change in multiple comparable variables.

· Price Index Number: This measure relative change in the price of a commodity over some time. They describe a business environment. There are the following two types of price index number available:

1. Wholesale Price Index Numbers: These are measured on the basis of wholesale prices of certain critical raw materials and semi-finished goods. The sample basket includes commodities that are important, as well as price sensitive.

2. Retail or Consumer Price Index Number: This is measured on the basis of retail prices of final consumer goods. Here fluctuations are very high.

3. Quantity Index Number: This is measured in terms of changes in the number of products produced or consumed physically.

4. Industrial Index Number: These are constructed to measure the change in industrial production over time.

5. Wage Index Number: It is estimated to find the differences in the wages of workers over some time.

6. Cost of Living Index Number: These are measured based on the essential goods and services consumed by ordinary people.

Methods of constructing Index Number:

There are two methods of building the index number. These are as follows:

1. Aggregative Method: 

2. Relative Method

For Example:

There are two commodities, A and B.

Price of Commodity A in base year=20

Price of commodity B in support year=15

Amount of commodity C in bottom year=10

Price of commodity A in current year= 25

Price of commodity B in current year= 15

Price of commodity C in current year=10


Then

Price Index= *100

         = *100

          = 111.111

Importance:

· It is easy to make comparisons based on the index.

· It may be used in the simplification of facts.

· This method is used for forecasting purposes.

· Index number has its application in academics as well as industry. 

· It helps in understanding business or market trends.

· It is the basis of different government policies.

Limitations:

· Computation process is complicated.

· Index numbers can be used to represent data within the country itself because every other country takes a different base year and different commodity basket for index number calculation.

· This method considers the quantity of any commodity. But the consumption of a product also depends on the quality of merchandise.


SSC UPSC Public Sector Jobs
Like| 3 Comment
study24x7
Write a comment...
Trending Articles

Best Study timetable for class 8th students

By CBSE CLASS 8

HOW TO WRITE CERTIFICATE SECTION FOR CLASS XII SCHOOL PROJE...

By Edubabble LLP

Best topic ideas for class 7 Science projects

By CBSE CLASS 7

The best daily routine for class 8 students

By CBSE CLASS 8
Featured Courses
Related Posts

Check these related articles on Study24x7

Different Cultures of India - UPSC 2020
6 min read 59 views

It is essential for all the candidates appearing for the UPSC civil services exam to know the culture of their country and to be well aware of all

UPSC & State PSC

1008 followers

Challenges in Government IBPS CLERK 2020 Exam
6 min read 1 views

The number of aspirants every year attempts for Government exams like SSC CGL. But only some of them are able to crack it. The ratio is relatively low

Banking/IRDA

265 followers

How to Solve Issues with the best UPSC coaching in Delhi NCR
25 min read 5 views

A candidate has to dedicate a lot of time and effort to be able to grasp the vast syllabus for clearing the IAS exam. Months are spent only knowing ea

Youth Destination

3 followers

SSC CGL 2020 Preparation Strategy for General Awareness
7 min read 3 views

Brief Information: SSC CGL preparation strategy for general awareness requires an approach that is different from the one required for other sections.

SSC Preparation Strategies & S

1540 followers

IBPS Clerk 2020 Syllabus: General Awareness
6 min read 0 views

General awareness is one of the most crucial sections of any banking exam. In this section, you can be asked questions from a plethora of topics, maki

Banking/IRDA

265 followers

ICC ने लिया बड़ा फैसला, टी-20 वर्ल्ड कप 2020 हुआ स्थगित
6 min read 0 views

अंतरराष्ट्रीय क्रिकेट परिषद (आईसीसी) ने ऑस्ट्रेलिया में होने वाला टी-20 विश्व कप कोरोना (कोविड-19) महामारी के कारण 20 जुलाई 2020 को स्थगित कर दिया.

Vipin kumar gangwar

30 followers

Non-Cooperation Movement - Year, Background, Reasons & Outcomes
21 min read 184 views

The Non-Cooperation Movement was launched by the Indian National Congress under the leadership of Mahatma Gandhi. This movement was established on 5th

UPSC & State PSC

1008 followers

Current Affairs 2019-20 The Orange Festival Began in Manipur
6 min read 0 views

The SSC aspirants should make handy notes of current affairs for the UPSC 2020 Exam. The orange festival started in Manipur is an important current a

UPSC & State PSC

1008 followers

Share this article
Copy Link Link Copied