Question

difference between simple index number and simple composite index number and their uses in forecasting.  

Answer 1

Answer :

Simple index number :-

• A straightforward file number is the proportion of two qualities speaking to a similar variable, estimated in two unique circumstances or in two distinct periods.
• For instance, a straightforward file number of cost will give the overall variety of the cost between the present time frame and a reference period.
• The most regularly utilized straightforward file numbers are those of value, amount, and esteem.

Composite index number :-

• aracterized as the total of a lot of rudimentary numbers (for instance, the customer value list estimates the variety in the costs of 1,000 assortments of items in a solitary list number).
• The composite list number is a weighted mean of the basic file numbers in which the weighting speaks to the "mass" of the rudimentary numbers (on account of value lists, this mass is use).
• A Laspeyres list is weiA composite record number estimates the variety in the estimation of a composite number chghted by mass in the base time frame.
• A Paasche file is weighted by mass in the present time frame.