Index number
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Index number, in econometrics, is a figure reflecting a change in value or quantity as compared with a standard or base. The base usually equals 100 and the index number is usually expressed as a percentage. For example, if a commodity cost twice as much in 1970 as it did in 1960, its index number would be 200 relative to 1960. Index numbers are used especially to compare business activity, the cost of living, and employment. They enable economists to reduce unwieldy business data into easily understood terms.
[edit] See also
- Consumer price index – an example of an index number
[edit] Reference
- Robin Marris Economic Arithmetic (1958)
