index number

index number
A number used to represent the changes in a set of values between a base year and the present. If the index reflects fluctuations in a single variable, such as the price of a commodity, the index number can be calculated using the formula:
100 (pn/p0), where p0 represents the price in the base year and p0 represents the price in the current year. In practice many indices reflect variations in a combination of variables, such as the raw materials required to manufacture a product. In this situation it is necessary to produce an index that weights the important variables, e. g. labour costs. These are known as weighted aggregate indices. If both costs and quantities have varied over a period, it is further necessary to find a way of using the same quantities for the numerator and denominator of the index. When the calculation uses base-year quantities as the fixed point, the resultant index is a base-weighted (or Laspeyres') index, i. e. :
100(total cost of base year quantities at current prices-total cost of base year quantities at base year prices), or
100(∑pnq0/∑p0q0), where p represents the price and q represents the quantity. When the calculation uses current year quantities, it is known as a current-weighted (or Paasche's) index, i. e. :
100(total cost of current quantities at current prices-total cost of base year quantities at current prices), or
100(∑pnqn-∑p0qn). See also Financial Times Share Indexes; Retail Price Index

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  • index number — [ɛ̃dɛksnœmbœʀ] loc. (anglic.). ⇒ Index (5.), indice (II., 3.) …   Encyclopédie Universelle

  • Index number — An index number is an economic data figure reflecting price or quantity compared with a standard or base value.citation | first=W. E. | last=Diewert | contribution=Index Numbers | editor last = Eatwell | editor first = John | editor link=John… …   Wikipedia

  • index number — noun a number or ratio (a value on a scale of measurement) derived from a series of observed facts; can reveal relative changes as a function of time • Syn: ↑index, ↑indicant, ↑indicator • Hypernyms: ↑fact • Hyponyms: ↑ …   Useful english dictionary

  • index number — UK / US noun [countable] Word forms index number : singular index number plural index numbers economics a number that shows the change in the level of something such as a price or unemployment, compared with an earlier time …   English dictionary

  • index number — indekso numeris statusas T sritis Gynyba apibrėžtis NATO terminologijoje – teminio NATO terminų aiškinamojo žodyno termino straipsnio numeris. atitikmenys: angl. index number pranc. numéro d’index šaltinis NATO standartizacijos terminų… …   Lithuanian dictionary (lietuvių žodynas)

  • index number — number which shows the change in percentages …   English contemporary dictionary

  • index number — / ɪndeks ˌnʌmbə/ noun 1. a number of something in an index 2. a number showing the percentage rise of something over a period …   Dictionary of banking and finance

  • index number — noun Date: 1875 a number used to indicate change in magnitude (as of cost or price) as compared with the magnitude at some specified time usually taken as 100 …   New Collegiate Dictionary

  • index number — Statistics. a quantity whose variation over a period of time measures the change in some phenomenon. Also called index. [1870 75] * * * …   Universalium

  • index number — /ˈɪndɛks nʌmbə/ (say indeks numbuh) noun a number indicating change in magnitude, as of price, wage, employment, or production shifts, relative to the magnitude at some specified point usually taken to be 100 …  

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