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Unweighted Index Numbers Assignment Help

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Unweighted Index Numbers Assignment Help

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unweighted index numbers assignment help

Concept Of Complex Index Numbers

Complex index numbers refer to several concepts at the same time and their evolution in space and / or. We can say that they use complex quantities or n-dimensional variables.

An example of a complex index number would be the CPI that provides us with information on the price variation of the products included in the shopping list of Spanish families.

If all the considered concepts are of equal importance, Unweighted Complex Indices are calculated for them. When each concept has different importance we must use weighted complex indices.

Complex Unweighted Index Numbers

Consider the complex magnitude H formed by simple magnitudes {k H_1, H_2..., H_k}. To analyze the evolution of H we must take into account the evolution of all the simple quantities that compose it.

Thus we obtain the index M based on the indices of {H_1, H_2 ... H_k}. We can do it using their simple means (using the arithmetic mean, the geometric mean or the harmonic mean) or using the simple aggregative mean that is, simply comparing the sums of the different valueswith the reference period.

Index Of The Simple Arithmetic Mean

The complex index of the simple arithmetic mean is obtained by the arithmetic mean of the simple indices, that is,

Unweighted complex index numbers have the following limitations:

The units of measurement of the different simple quantities may be different, which will prevent us from making comparisons between different indices.

They give equal importance to each simple magnitude.

Example of calculating the index number of the simple arithmetic mean

A company manufactures a product of cost H that depends on 3 components with the same relative importance and costs H_1, H_2and H_3. Calculate for H the index of the simple arithmetic mean from the information in the following table:

t H1 H2 H3
0 3 one 3
one 3.5 3 two
two 3 3 one
3 2.5 two one
4 3 4 4
5 4 5 5
6 4.5 7 two

Solution- The first step will be to calculate the simple indices for the prices of each of the components:

T H1 H2 H3 It/0(H1) It/0(H2) It/0(H3)
0 3 One 3 100 100 100.00
One 3.5 3 two 116.67 300 66.67
two 3 3 one 100 300 33.33
3 2.5 Two one 83,333 200 33.33
4 3 4 4 100 400 133.33
5 4 5 5 133.33 500 166.67
6 4.5 7 two 150 700 66.67

The complex index is obtained by calculating at each moment the simple arithmetic mean of the simple indices:

T H1 H2 H3 It/0(H1) It/0(H2) It/0(H3)
0 3 One 3 100 100 100
one 3.5 3 two 116.67 300 66.67
two 3 3 one 100 300 33.33
3 2.5 Two one 83,333 200 33.33
4 3 4 4 100 400 133.33
5 4 5 5 133.33 500 166.67
6 4.5 7 two 150 700 66.67

We can say that the cost of the product is 61.11% higher at the moment than at the moment 0.

At time 2 there has been an increase in the cost of the product of 44.44% of the initial cost and so on.

Unweighted Index Numbers Assignment Help

FAQ On Unweighted Index Numbers

There are several queries and questions that students ask from our Unweighted Index Numbers Assignment experts. Some of them are listed below:

What Are Unweighted Indices?

The main difference is that in weighted capitalization indices, the structure is calculated based on the capitalization of the index components, while the Unweighted Indices or "equal weight" (translation of equal weight) gives each of the components the same weight within the index.

What Are Complex Index Numbers?

The indices Complex is a statistical measure that compares a complex magnitude in two different situations about time or space, taking one of them as a reference.

How Is The Fisher-Price Index Calculated?

The Fisher-price index is a geometric average, which is defined as the square root of the product of the Laspeyres index and the Paasche index.

How To Calculate The Paasche Index?

One that calculates in current year prices the amount of money that a consumer would need to buy a basket of goods chosen in the current year, divided by the cost of buying the same basket in a base year.

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