Merits of Geometric Mean
It is rigidly defined.It is based on all the items.It is capable of further algebraic treatment.It gives less weight to large items and more to small items.
Demerits of Geometric Mean
It is difficult to compute.It ...
Scatter Diagram
The esistence of correlation can be shown graphically by means of a scatter diagram Statistical data relating to simultaneous movements (or variations) of two variable S can be graphically represented by points. ...
List of various Tests of Adequacy of Index Number Formula Are:
Unit TestTime Reversal TestFactor Reversal TestCircular Test
Unit Test:
This test states that the formula for constructing an index number should be independent of the units ...
Requisites of a good average are as follows:
It should be simple to compute.It should be easy to understand.It should be rigidly defined.It should be representative of all the items.It should not be unduly affected by extreme values.It should be ...
Deflating:
One of the most useful application of price indices is to adjust series of rupee figures for changes in level of prices. This is known as deflation. The figures are restated in constant rupees. With the help of deflation, a Series of ...
There are two types of measures of dispersion:
Absolute measures of dispersionRelative measures of dispersion.
Absolute measures of dispersion:
These are the measures which are expressed in the same statistical unit in which ...
Problems in the Construction of Index Numbers:
Selecting the purpose of the index number:
There cannot be any all-purpose index. For example, if an index number is to measure consumers prices, then it must not include or cover wholesale ...
Mid -value: It is the average of the lower limit and the upper limit of a class.Example:
Lower limit of the first class is 0 and the upper limit is 10. Therefore, mid-value of the first class is 0+10 / 2 i.e., 5. ...
False Base Line is a device relating to graphical presentation. This line is used to break the continuity of Y-axis with the origin. A false base line is used when figures start with high values. If we maintain continuity of the value from the ...
Functions of Statistics:
Statistics presents facts in a definite and precise form: Statistics presents statements of facts in a precise quantitative and definite For example, the statistical technique of index numbers presents the expression ...
The term statistics has been defined in singular sense as well as plural sense.
Statistics in Singular Sense:
In singular sense, the term statistics has been defined as statistical methods. The best definition of statistics in ...
An index number can be called as a device which measures the relative change in the level of a phenomenon with respect to time, geographical location or some other characteristics. The phenomenon may be the prices of commodities, the physical ...
