Write short notes on the following: i) Price relatives. ii) Fixed base method. iii) Chain base method. iv) Weighted index number. v) Quantity index number.

      

Write short notes on the following:
i) Price relatives.
ii) Fixed base method.
iii) Chain base method.
iv) Weighted index number.
v) Quantity index number.

  

Answers


Wilfred
i) Price relative is an index number that compares prices of a given commodity for a given period in relation to its price in another period.

ii) Fixed base method compares prices of a commodity for a given period in relation to price of the commodity in a base period.

iii) In chain base method, the base is the price of the previous period. It is not fixed to a particular period

iv) Weighted index number is one that appropriate weights have been added to reflect relative importance of commodities. This makes index numbers be reliable.

v) Quantity index number is one that shows the change from one period to the other of quantities involved.
Wilfykil answered the question on February 20, 2019 at 10:13


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