Index Numbers

1
Index Numbers

• Shows the rate of change of price/value/quantity
  of a product over a period of time
• It is a relative to a starting value or base no.

2
Index Nos

• Formula you need is
• Index No Present value x 100
• Start Value

3
Index Nos

• Example,
• This is the price of a toy over a 3 year period

Using 1998 as the base year, find the price
relative (Index No.) in 1999 and 2000, comment on
these indexes.
4
Index No Questions

• The price of a 200g jar of coffee in 1997 was 3,
  in 2000 it was 3.25. Calculate an index number
  (price relative) using 1997 as the base year.
• In 1998 the price of a small car was 6950, it
  was 7400 when it was bought a year earlier.
  Calculate a price relative using 1997 as a base
  year.

5
Index Nos Questions cont

• This is a table for the typical cost of a pint of
  beer from 1995 to 2000. Can you complete it?