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Tag Archives | Index Numbers

Index Numbers: Characteristics, Formula, Examples, Types, Importance and Limitations

In this article we will discuss about:- 1. Meaning of Index Numbers 2. Features of Index Numbers 3. Steps or Problems in the Construction 4. Construction of Price Index Numbers (Formula and Examples) 5. Difficulties in Measuring Changes in Value of Money 6. Types of Index Numbers 7. Importance 8. Limitations. Meaning of Index Numbers: […]

7 Major Problems of Index Numbers | Inflation

The following points highlight the seven major problems of index numbers. The problems are: 1. Inadequate Coverage 2. Choice of Weights 3. Choice of Base Year 4. Inaccuracy 5. Income Variation 6. The Time Factor 7. Comparability. Problem # 1. Inadequate Coverage: The first problem lies in the fact that it is impossible to cover […]

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