Stats

• What does an index number show?

  Rate of change of price over time
• How is an index number calculated?

  Index number = price / base year price x 100
• What does an index number greater than 100 indicate?

  It shows an increase in value
• What does an index number less than 100 indicate?

  It shows a decrease in value
• What are the differences between RPI, CPI, and GDP?

  • RPI: Measures rate of change of prices in everyday life, includes mortgage payments, used by government for interest rates on student loans.
  • CPI: Measures rate of price changes in everyday life, excludes mortgage payments.
  • GDP: Value of goods and services produced by a country in a stated time period.
• When is an economy considered to be in recession?

  When GDP falls in two or more successive quarters
• How is a weighted index number calculated?

  Weighted index number = current weighted mean price / base year weighted mean price x 100
• What is the formula for calculating the weighted mean?

  Weighted mean = Σwx / Σw
• How do you calculate percentage increase using an index number?

  Percentage increase = index - 100
• What is a chain base index number?

  Chain base index number = price / last year's price x 100
• How can you calculate a chain base index number for a month?

  Chain base index number = price / last month's price x 100
• What does the crude birth rate represent?

  Number of births per thousand of population
• What does the crude death rate represent?

  Number of deaths per thousand of population
• How is the crude rate calculated?

  Crude rate = no. of deaths/births/(people unemployed) x 1000 / total population
• How can you calculate the rate of change for a population?

  You can calculate it per 100, rather than 1000
• What is the formula for a standard population?

  Standard population = no. in age group x 1000 / total population