What is Index Number: Definition,Types, Formulae with Examples

The compilation of these Economics Notes makes students exam preparation simpler and organised.

Index Numbers

“The Sensex today fell by 307 index points”. You must hear some version of this statement quite often. So what is an index number? In economics Index Numbers are a way of expressing data in comparison to a base value. Let us take a detailed look at index numbers and also learn about a few important index numbers.