TYPES of index number

               TYPES OF INDEX NUMBERS
There are various types of index numbers:

(a) Price Index
(b) Quantity Index
(c) Value Index

(a) Price index:
For measuring the value of money, the general price index is used. It is an index
number which compares the prices for a group of commodities at a certain time or a place
with price of a base period.

(b) Quantity Index:
Quantity index numbers study the changes in the volume of goods produced or
consumed; for instance, industrial production, agricultural production, import, export,
etc.

(c) Value Index:
There index numbers compare the total value of a certain period with the total
value of the base period.

NOTATIONS:
P0 = Price of a commodity in the Base Year
P1 = Price of a commodity in the current Year
q0 = Quantity of a commodity consumed or purchased during the Base Year
q1 = Quantity of a commodity consumed or purchased in the current Year
w = Weight assigned to a commodity according to its relative importance in the group
P01 = Price Index Number for the current year with reference to the base year
q01 = Quantity Index Number for the current year with reference to the base year

                          Thank you

M.Divya prabhu
  I-B.COM
23UCM008

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