Stats GCSE Index numbers

What does an index number do?

Compares the price change of an item with its base year price

How to calculate index numbers

(price/base year price)\*100

What does an index number mean?

>100=increase

What’s the retail price index?

Shows a rate of change of prices of everyday goods

Examples of what the RPI is about

Mortgages, food and heating

What’s the consumer price index?

Official measure of inflation used by UK government

What’s the difference between RPI and CPI?

CPI doesn’t include mortgage payments

What’s the gross domestic product?

Value of goods and services produced in a country in a given amount of time

What means an economy is in recession?

If the GDP falls for 2 or more quarters

What does a weighted index number do?

It takes into account proportions

How to calculate the weighted index number

(sum of (index number\*weight))/sum of weights

What does a chain base index number do?

Compares prices from each year to the previous year

How to calculate CBIN

(price/last year’s price)\*100

What kind of index numbers are RPI and CPI?

CBIN that show annual or monthly changes

What’s the crude birth rate?

Number of births per thousand of the population

What’s the crude death rate?

Number of deaths per thousand of the population

How to calculate crude rate

(number of births or deaths/total population)\*1000

What’s the standard population?

Hypothetical population of 1000 people used to represent the whole population

How to calculate standard population

(number in age group/total population)\*1000

What does a standardised rate do?

Allows you to compare the same age group in different populations.

How to calculate the standardised rate

(crude rate/1000)\*standard population