Index numbers
In this lesson, you'll learn how index numbers simplify complex data and help you track price changes over time—a key skill for performance management and exam questions.
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In this lesson
- 0:00 Introduction to index numbers
- 1:43 Real-world applications and FTSE 100
- 3:02 Simple price index numbers explained
- 4:13 Worked example: calculating future prices
- 6:05 End of section
About this lesson
You'll discover how simple price indices work using real-world examples like inflation measures and the FTSE 100, then apply the formula to calculate predicted costs when prices fluctuate. This technique is essential for forecasting material costs and understanding business trends, and exam questions typically focus on straightforward price index calculations. By the end, you'll be confident using index numbers to compare values across different periods relative to a base year.
Duration: 6m
Transcript
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