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Chapter 5

Chapter 5. Index numbers. 1…Write the formula for consumer price index?. Ans.. cpi = wp /w. 2..Write the formula for price relative?. Ans..P=p1/ po *100. 3..wrute the frmula for wspi ?. Ans.. Wpi =wp1-wpo/ wpo *100. 4..what is base period in construction of index number?.

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Chapter 5

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  1. Chapter 5 Index numbers

  2. 1…Write the formula for consumer price index? Ans..cpi=wp/w 2..Write the formula for price relative? Ans..P=p1/po*100 3..wrute the frmula for wspi? Ans..Wpi=wp1-wpo/wpo*100 4..what is base period in construction of index number? Ans..index number is a specialised average designed to measure the changes in a variable With respect to time . This stastical device is used to measure the changes in the quantities

  3. 5…what is price relative? Ans..price relative is the price in the current year expressed as a percentage of prices in the base year 6..what is sensex? Ans..sensex is a free float market capatilization ,weighted stock market index of 30 well Established and financially sound companies listed on bombay stock exchange <bse> 7..how many companies are included in calculating sensex? Ans..30 8..what is free float factor? Ans…it is a capital which is not such as machinally but work in progress wages etc… This is called as working capital or work in progress 9..how the percentage of weight in sensex is calculated ? Ans..senxex=free float market capatilasation * index divisor

  4. Ans..this stastical device is used to measure the changes in the quantities such as prices ,wages , cost , sales ,production,exports,imports,etc..it measures a change over a period Of time referring to a base year ,whose value iis equal to100. so, it compares economic Variables of a particular group at two different periods 10..Explain the meaning of the concept of index number? 11..in what sense index number are considered as economic baroometers? Ans..cpi measures cost of living and purchasing power of money. Wpi measures inflation ,analyses the market and measures the value of money. Senses measures share market Trends.hdi measures human development .these are populraly called “economic Barometers” 12 ..what is cost of living index? Ans..it measures the overall changes in the prices of a fixed basket goods and services bought by typical consumer related to price of the same basket in the base year .it helps to estimate tne real cost of living .so it is also known as “cost of living index”

  5. By mahendra

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