Page 239 - DECO504_STATISTICAL_METHODS_IN_ECONOMICS_ENGLISH

Unit 17: Methods: Simple (Unweighted) Aggregate Method

prices during the same period in a previous year, to show effect Notes
of inflation on purchasing power. It is one of the best known
lagging indicators. See also producer price index.
4. Producer price index (PPI) : Relative measure of average change in price of a basket of
representative goods and services sold by manufacturers and
producers in the wholesale market. A family of three indices
(finished goods, intermediate goods, and raw materials or crude
commodities), it is used as an indicator of rate of inflation or
deflation. In contrast to the consumer price index (CPI) which
measures price changes from the consumer's perspective, PPI
measures them from the seller's perspective. Older name
wholesale price index.
17.4 Review Questions

1. What do you mean by Simple Index Number? Discuss its methods.
2. What is Simple aggregate method? Explain with examples.
Answers: Self-Assessment

1. (i) √ (ii) √ (iii) √ (iv) √
17.5 Further Readings

1. Elementary Statistical Methods; SP. Gupta, Sultan Chand & Sons,
New Delhi - 110002.
2. Statistical Methods — An Introductory Text; Jyoti Prasad Medhi, New Age
International Publishers, New Delhi - 110002.
3. Statistics; E. Narayanan Nadar, PHI Learning Private Limied, New Delhi - 110012.
4. Quantitative Methods—Theory and Applications; J.K. Sharma, Macmillan
Publishers India Ltd., New Delhi - 110002.

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