INDEX NUMBERS (unit-V)

What is meant by weighted index number?

Unlike simple index numbers, weighted index numbers, as the name suggests, weigh items according to their importance with respect to the concerned variable.

What is unweighted index number and weighted index number?

An unweighted index gives equal allocation to all securities within the index. A weighted index gives more weight to certain securities, typically based on market capitalization. One index type isn't necessarily better than another, they are just showing data in different ways.

What is index number and its types?

Some common types of index numbers are known as price index numbers, quantity index numbers, value index numbers, and special purpose index numbers. Price index numbers: A price index is a measure of changes in prices of a variable or group of variables over time.

What are 3 main types of index number?

There are broadly three types of index numbers – price index numbers, value index numbers, and quantity index numbers.