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In statistics and research design, an index is a composite statistic – a measure of changes in a representative group of individual data points, or in other words, a compound measure that aggregates multiple indicators. [1] [2] Indices – also known as indexes and composite indicators – summarize and rank specific observations. [2]
This index uses the arithmetic average of the current and based period quantities for weighting. It is considered a pseudo-superlative formula and is symmetric. [12] The use of the Marshall-Edgeworth index can be problematic in cases such as a comparison of the price level of a large country to a small one.
Index numbers are used especially to compare business activity, the cost of living, and employment. They enable economists to reduce unwieldy business data into easily understood terms. In contrast to a cost-of-living index based on the true but unknown utility function, a superlative index number is an index number that can be calculated. [1]
Note how the use of A[i][j] with multi-step indexing as in C, as opposed to a neutral notation like A(i,j) as in Fortran, almost inevitably implies row-major order for syntactic reasons, so to speak, because it can be rewritten as (A[i])[j], and the A[i] row part can even be assigned to an intermediate variable that is then indexed in a separate expression.
A Divisia index is a theoretical construct to create index number series for continuous-time data on prices and quantities of goods exchanged. The name comes from François Divisia who first proposed and formally analyzed the indexes in 1926, and discussed them in related 1925 and 1928 works.
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Price indices generally select a base year and make that index value equal to 100. Every other year is expressed as a percentage of that base year. In this example, let 2000 be the base year: 2000: original index value was $2.50; $2.50/$2.50 = 100%, so new index value is 100
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