PEV - Index numbers

HayleyM

Hi All,

Sorry me again!
I really cannot remember how to calculate index numbers and my textbooks do not give alot of info about this. Please could someone explain how to calculate them? Sorry, I know it sounds a bit vague but I don't really remember much about them.....

This is the first time I will go into an exam and not feel confident that I can do it..... oh well I suppose there is always the plus side of having computer based exams and being able to resit sooner rather than later....

Thanks in advance and good luck to you all!

aimeexox

This is very vague....

but you take the amount you've probably just been ased to work out divided by the base that they tell you x 100.. i think... thats how ive been doing it from the past papers anyway!!

Any better (more correct wording) way of doing it would be very much appreciated!!

Woooof

This is what my book describes the calculations as:

"Whatever type of index we need to use, the principle is the same. The index numbers reprresent a convenient way of comparing figures.

For example, the RPI was 82.61 in January 1983, and 173.3 in January 2002. This means that average household costs had more than doubled in the 19 years between. We could also calculate that if something that cost £5.00 in January 1983 has risen exactly in line with inflation, it would have cost £10.49 in January 2002. This calulation is carried out by:

Historical Price x (index of time converting to / index of time converting from)

ie. £5.00 x (173.3 / 82.61) = £10.49"

Hope that helps

HayleyM

aimeexox wrote: »

This is very vague....

but you take the amount you've probably just been ased to work out divided by the base that they tell you x 100.. i think... thats how ive been doing it from the past papers anyway!!

Any better (more correct wording) way of doing it would be very much appreciated!!

Oh yea.... I think I know what you mean! That has just refreshed my memory!
Thank you :0)

Good Luck!