The index – the generalizing relative indicator reflecting change in time of the parameters characterizing any given phenomenon in comparison with basic value, the plan or the forecast. The index is the relative size of dynamics, growth rate as it is connected with change in time. It is the analysis tool used in statistics for planning and production management.
Instruction
1. Indexes are classified depending on a research object on indexes of volume or quantitative indices (products, quantity of goods, consumption of material benefits, the provided services) and indexes of quality indicators (the index of the salary, consumer prices, product cost). On degree of coverage of the considered set elements the indexes are subdivided into the general, characterizing all phenomenon in general or all set, and individual, reflecting dynamics changes of separate elements of the phenomenon. Besides, depending on what is base of comparison indexes can be basic when compare to the same basic period of time, and chain when comparison is made with the previous period.
2. For each index allocate three elements: the indexed indicator which ratio of quantitative estimates characterizes this index; the compared level – a quantitative index for the studied period of time and basic level – a quantitative index for the reference, basic period of time to which the studied period is compared. The index in essence is coefficient.
3. Indexes are two main types – simple and analytical (modular, the general). Simple indexes reflect dynamics of change of the studied sign without its interrelation with other economic, political, public events. It is possible to calculate the simple index (Ip) by a formula: Ip = P1/P0, where: P1 is a condition of the studied sign during the interesting period, P0 is a condition of the studied sign during the basic or previous period.
4. Use an index method in the economic analysis for assessment of relative change of any economic event or an indicator, for definition of influence of separate factors on change of a productive indicator, for assessment of the impact of change of structure of the phenomenon at a size of dynamic change of this economic event.