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Index numbers are used to show relative values ? a change in a variable relative to a base point in time. Index data uses a base (usually 100). Index numbers have no units. If you wanted to calculate the percentage change from the base you would just subtract 100, e.g. Year 1 = 100, Year 3 = 110.

Fisher's formula because it uses geometric mean and thus is a better representative.

Index numbers measure a net or relative change in a variable or a group of variables. For example, if the price of a certain commodity rises from ?10 in the year 2007 to ?15 in the year 2017, the price index number will be 150 showing that there is a 50% increase in the prices over this period.

Index numbers are values expressed as a percentage of a single base figure. For example, if annual production of a particular chemical rose by 35%, output in the second year was 135% of that in the first year. In index terms, output in the two years was 100 and 135 respectively.

Aggregative method of calculating index numbers In this method, the index number (P) = the sum of all the values of all the commodities in the current year (P1) divided by the sum of all the values of the same commodities in the base year (P0) and multiplied by 100.

An index value of 100 indicates that a result exactly matches the baseline average, an index of 200 that the result is twice the average, and an index of 50 that it is half the average. Broadly speaking, an index of less than 90 or more than 110 would be considered different enough from the average to take note of.

An index number is a device for measuring changes in a variable ora group of related variables. The index number of industrial activity enables us to study the progress of industrialization in the country. These cost of living index numbers show changes in the prices of goods generally consumed by people.