Index Number
An index number is a statistical measure used to compare changes in a variable over time or between different groups. It is a type of normalized measure, meaning that it is adjusted to account for changes in the base value of the variable being measured. Index numbers are used in economics, finance, and other fields to measure changes in the value of a variable over time or between different groups. For example, the Consumer Price Index (CPI) is an index number used to measure changes in the prices of goods and services over time.
History of Index Numbers
The concept of index numbers was first developed in the late 19th century by economists such as William Stanley Jevons and Irving Fisher. Jevons developed the first index number in 1876 to measure changes in the price of wheat over time. Fisher developed the first index number to measure changes in the cost of living in the United States in 1913. Since then, index numbers have been used to measure changes in a variety of economic and financial variables, such as stock prices, wages, and inflation.
Comparison Table
| Year | Index Number |
|---|---|
| 2020 | 100 |
| 2021 | 105 |
| 2022 | 110 |
Summary
Index numbers are a statistical measure used to compare changes in a variable over time or between different groups. They are used in economics, finance, and other fields to measure changes in the value of a variable over time or between different groups. The concept of index numbers was first developed in the late 19th century by economists such as William Stanley Jevons and Irving Fisher. For more information on index numbers, visit websites such as Investopedia, The Balance, and the Bureau of Labor Statistics.
See Also
- Consumer Price Index (CPI)
- Producer Price Index (PPI)
- Gross Domestic Product (GDP)
- Gross National Product (GNP)
- Inflation
- Deflation
- Interest Rates
- Exchange Rates
- Stock Prices
- Wages
