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Introductory Management Statistics Topic 1 - 1.21
Percentage Change Between
Index Numbers
NCC Education Limited V1.0
year chocolate bar
index annual
%
sandwich
price index
bag of crisps
price index
Jan 2009 100.00 - 100.00 - 100.00 -
Jan 2010 110.64 10.64 103.78 3.78 101.67 1.67
Jan 2011 119.15 7.69 108.11 ? 105.00 ?
Topic 1 - Introductory Management Statistics Advanced Mathematics for Business
V1.0 Visuals Handout Page 8
Introductory Management Statistics Topic 1 - 1.22
Rebasing Price Relatives
Reasons for changing base period;
- Mature series =>large indices, relevance of base
period
- Compare different indices which have used different
base years
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00 01 02 03 04 05 06 07 08 09 10 11
Index (02
as base) 93 97 100 106 119 122 133 148 164 177 188 196
Index (07
as base) ? 100
Introductory Management Statistics Topic 1 - 1.23
Rebasing Price Relatives
NCC Education Limited V1.0
00 01 02 03 04 05 06 07 08 09 10 11
Index (02
as base) 93 97 100 106 119 122 133 148 164 177 188 196
Index (07
as base) 63 66 68 72 80 82 90 100 111 120 127 132
Introductory Management Statistics Topic 1 - 1.24
Simple Aggregate Indices
year price
chocolate bar sandwich bag of crisps I
Jan 2009 0.47 1.85 0.60 100.00
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Jan 2010 0.52 1.92 0.61 104.45
Jan 2011 0.56 2.00 0.63 ?
Topic 1 - Introductory Management Statistics Advanced Mathematics for Business
V1.0 Visuals Handout Page 9
Introductory Management Statistics Topic 1 - 1.25
Laspeyres (Base Weighted) Price
Index
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Introductory Management Statistics Topic 1 - 1.26
Example
year chocolate bar
price quantity
sandwich
price quantity
bag of crisps
price quantity
09 0.47 45 1.85 17 0.60 13
10 0.52 30 1.92 20 0.61 13
11 0.56 22 2.00 22 0.63 13
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Introductory Management Statistics Topic 1 - 1.27
Paasche (Current Weighted) Price
Index
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Topic 1 - Introductory Management Statistics Advanced Mathematics for Business
V1.0 Visuals Handout Page 10
Introductory Management Statistics Topic 1 - 1.28
Example
year chocolate bar
price quantity
sandwich
price quantity
bag of crisps
price quantity
09 0.47 45 1.85 17 0.60 13
10 0.52 30 1.92 20 0.61 13
11 0.56 22 2.00 22 0.63 13
NCC Education Limited V1.0
Introductory Management Statistics Topic 1 - 1.29
Weighted Index Numbers
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Introductory Management Statistics Topic 1 - 1.30
Weighted Index Numbers
w R
eggs 18 151.00 2718.00
flour 16 225.70 3611.20
fat 5 94.60 473.00
sugar 14 405.00 5670.00
lemons 2 256.40 512.80
gas 45 319 40 14373 00
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gas 45 319.40 14373.00
100 27358.00
Topic 1 - Introductory Management Statistics Advanced Mathematics for Business
V1.0 Visuals Handout Page 11
Introductory Management Statistics Topic 1 - 1.31
Deflating Data - 1
Year CPI
1
actual pay deflated (2007)
2007 104.7 16,769 16,769
2008 108.5 17,127
2009 110.8 17,582
2010 114.5 17,940
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Introductory Management Statistics Topic 1 - 1.32
Deflating Data - 2
Year CPI actual pay deflated (2007)
2007 104.7 16,769 16,769
2008 108.5 17,127 16,527
2009 110.8 17,582 16,614
2010 114.5 17,940 16,405
NCC Education Limited V1.0
16,000
16,500
17,000
17,500
18,000
actual
deflated (2007)
Introductory Management Statistics Topic 1 - 1.33
Recap
Recognise nominal, ordinal, interval and ratio data
types
Recognise and use mode, median, mean, range,
standard deviation and coefficient of variation
NCC Education Limited V1.0
Calculate Laspeyres and Paasche index numbers
Use index numbers to calculate percentage
changes and to deflate series
Topic 1 - Introductory Management Statistics Advanced Mathematics for Business
V1.0 Visuals Handout Page 12
Introductory Management Statistics Topic 1 - 1.34
References
ONS (2011),
www.statistics.gov.uk/statbase/product.asp?vlnk=86
8, accessed 2
nd
March 2011
NCC Education Limited V1.0
Introductory Management Statistics Topic 1 - 1.35
Topic 1 Introductory Management
Statistics
NCC Education Limited V1.0
Any Questions?