Index Number/Examples/Arbitrary Example 1

Example of Index Number

Let the price of an item $I$ be $50$ in the base year.

Let the price of $I$ be $55$ and $70$ in the two subsequent years.

Then the index number of $I$ based on its price would be $100$, $110$ and $140$ for those successive years.

Sources

• 1998: David Nelson: The Penguin Dictionary of Mathematics (2nd ed.) ... (previous) ... (next): index (plural indices)${}$: 1. (index number)
• 2008: David Nelson: The Penguin Dictionary of Mathematics (4th ed.) ... (previous) ... (next): index (plural indices)${}$: 1. (index number)