Q: I am struggling with index numbers (Part 1)…
13 September 2012
…Although I understand the principal and how to calculate a simple index number, when it comes to inflating, deflating, changing the base years and weighted index numbers, I am lost.
…Although I understand the principal and how to calculate a simple index number, when it comes to inflating, deflating, changing the base years and weighted index numbers, I am lost.
(Part 1): Inflation. One problem with inflation is that it can make the cost of each period impossible to compare. To overcome this, you need to adjust the costs to the same...