Question

Importance of Index Number ​

Answer 1

Answer:Index numbers are important in economic statistics. In simple terms, an index (or index number) is a number displaying the level of a variable relative to its level (set equal to 100) in a given base period. Index numbers are intended to study the change in the effects of such factors which cannot be measured directly.

Explanation:

Answer 2

Index numbers are intended to measure the degree of economic changes over time. These numbers are values stated as a percentage of a single base figure. Index numbers are important in economic statistics. ... Index numbers are intended to study the change in the effects of such factors which cannot be measured directly.