Index Numbers in Business Mathematics & Statistics

An Index Number is s statistical measure which tells about the change in Economic activity. Index numbers helps us to know whether the prices are going up or down; industrial production is rising or falling; imports /exports are increasing or decreasing, etc. Thus, Index Numbers are rightly called as the Barometer of the economy. An Index Number is a statistical measure designed to show changes in variable or group of variables with respect to time, geographic location or other characteristic. Index numbers are indicators of average percentage change in a series of figures where one figure (called the base) is assigned an arbitrary value of 100, and other figures are adjusted in proportion to the base. In this course , the students will understand:

• The Basic concepts and Models of Index Numbers

• Simple Aggregative Method and Average of Price Relatives Method

• Fishers Ideal Index Model, Dorbish Method, Laspayer's Method, Pasche's Method, Marshall Method

• Time Reversal Test and Factor Reversal Test

• Advanced Concepts in Index Numbers  like Deflating and Splicing

In business, managers are often concerned with the way in which values change over time:

· prices paid for raw materials;

· numbers of employees and customers,

· annual income and profits, etc.

In this course the students will learn how can the Index numbers be used to describe such changes. They are often concerned with money or manpower. It is necessary in business to be able to understand and manipulate the different published index series, and to construct your own index series.