Constructing index numbers, Financial Management

Constructing Index Numbers

There are two approaches for constructing an index number namely the aggregates method and average of relatives method. The index constructed in either of these methods could be an unweighted index or a weighted index. A weighted index is an index where weights are assigned to the various items constituting the index. On the other hand, an unweighted index is an index where equal weights are implicitly assigned.

Posted Date: 9/17/2012 2:23:33 AM | Location : United States

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