Free Essay

Cosumer Index Plan

In: Business and Management

Submitted By dhirsinha
Words 376
Pages 2
Qus : What methods of Index Number calculation is used to calculate Cost of Living Index (CLI). What methods of Index Number calculation is used to calculate Cost of Living Index (CLI).


Cost of Living Index is a theoretical price index ,or general price index, showing the difference between the living cost between cities. The cost of living for the base city is expressed as 100 , The cost of living in the destination is then indexed against this number .The major cities in India are having cost of living index below the reference cities ,like Delhi having 63 ,Bangalore 62 and Kolkata having 42 in the list. The interpretation is like ,if a city is having CLI as 120 it is 20% more expensive than the base city. So ,on a broader note CLI gives a picture as to how costly a city is compared to other cities.
Items contributing to consumer price index are generally: * Food * Clothing * Fuel and Lighting * Housing * Miscellaneous.

The Cost of living is indexed because :

* CLI numbers are used for adjustment of dearness allowance to maintain the same standard of living. * It helps in framing suitable policies . * It also reveals trends and tendencies . * The numbers are useful in deflating. * Its helps in measuring purchasing power of money.

The consumer price index (CPI) is the primary measure of the cost of living. Now to compute the CPI we need to determine what prices are important to the typical user. Then to find the prices of the goods and services. Then we need choose between :

Fixed Base Method: Under this method index number is calculated with a fixed base year. By this method the index number of a given year is not influenced by the variation of prices of any other year.

Chain Base Method: Under This method the price of any period or year is related with the price of the immediate previous period or year. It has no relation with the price of fixed based period.

But to have more accurate calculation we use ‘chain base method’ ,which has the following advantages :

* Direct comparison between two successive periods is possible through link indices. * This method is useful when weights are changing rapidly. * It facilitates introduction in new item replacing old one.…...

Similar Documents

Free Essay

Forecasting with Index

...Forecasting with Indices Beverly Morris University of Phoenix Quantitative Reasoning for Business 501 Dr. Albert Smothers September 27, 2012 Summer Historical Inventory Data To determine the index to start the process the average of the first year need to be identified. Then, to identify the index the monthly average of the four years is dividing the average. The formula that can be used to determine the forecast is formula: y = 2756.6x +35458=49241. Multiply the monthly index by 49241 to determine the 5th year forecast. Summer Historical Inventory Data | | | | | | Typical Seasonal Demand for Summer Highs | | | | | Actual Demands (in units) | | | | | | | Month | Y1 | Y2 | Y3 | Y4 | Avg. | Index | Forecast (Y5) | | 1 | 18,000 | 45,100 | 59,800 | 35,500 | 39,600 | 94 | 46,042 | | 2 | 19,800 | 46,530 | 30,740 | 51,250 | 37,080 | 87 | 43,113 | | 3 | 15,700 | 22,100 | 47,800 | 34,400 | 30,000 | 70 | 34,880 | | 4 | 53,600 | 41,350 | 73,890 | 68,000 | 59,210 | 139 | 68,840 | | 5 | 83,200 | 46,000 | 60,200 | 68,100 | 64,375 | 152 | 74,847 | | 6 | 72,900 | 41,800 | 55,200 | 61,100 | 57,750 | 136 | 67,146 | | 7 | 55,200 | 39,800 | 32,180 | 62,300 | 47,370 | 111 | 55,078 | | 8 | 57,350 | 64,100 | 38,600 | 66,500 | 56,638 | 133 | 65,851 | | 9 | 15,400 | 47,600 | 25,020 | 31,400 | 29,855 | 70 | 34,713 | | 10 | 27,700 | 43,050 | 51,300 | 36,500 | 39,638 | 94 |......

Words: 303 - Pages: 2

Premium Essay

Secondary Index

...Abstract—A database index is a data structure that improves the speed of data retrieval operations on a database table at the cost of slower writes and increased storage space. This paper describes data indexes in database management system and the types of data indexes and how the data organized. It focuses on the secondary index in the database and a secondary index on a non key field implemented. Index Terms—Database Indexes, Indexes, Secondary Indexes. (keywords) database system would look up an index to find on which disk blocks the corresponding record resides, and then fetch the disk block, to get the account record. Keeping a sorted list of account numbers would not work well on every large databases with millions of accounts, since the index would itself be very big; further, even through keeping the index sorted reduces the search time, finding an account can still be further time-consuming. Instead, more I. Introduction An index for a file in a database system works in much the same way as the index in any normal books. If we want to learn a particular topic (described by a word or phrase) in this book, we can search for the topic in the index at the back of the book, find the pages where it occurs, and then read the pages to find the information we are looking for. The words in the index are in sorted order, making it easy to find the word we are looking for. Moreover, the index much smaller than the book, further reducing the effort needed to find the......

Words: 2595 - Pages: 11

Premium Essay

The Workforce Index has begun to evolve into workforce optimisation. Specifically, workforce management includes * Payroll and benefits * HR administration * Employee self-services * Time and attendance * Career and succession planning / talent acquisition * Talent management and/or applicant tracking * Learning management and/or training management * Performance management * Forecasting and scheduling * Workforce tracking and emergency assist * Absence management Workforce management can also encompass field service management. This provides software to optimally plan and dispatch field service technicians and their properly stocked vehicles to a customer's location in a timely manner in order to deliver against their service commitments. Field service management will itself include elements of: * Demand management – to help forecast work orders to plan the number and expertise of staff that will be needed * Workforce scheduler – using predefined rules to automatically optimise the schedule and use of resources (people, parts, vehicles) * Workforce dispatcher – automatically assigning work orders within predefined zones to particular technicians * Mobile solutions – allowing dispatchers and technicians to communicate in real time | Definition In many markets and industries, workforce management is all about assigning the right employees with the right skills to the right job at the right time. The term is......

Words: 4736 - Pages: 19

Premium Essay


...Bachelor of Science in Hotel, Restaurant and Institutional Management Academic Advisers work with students to plan courses of study. Academic Advisers work with students to plan courses of study. The Hotel, Restaurant, and Institutional Management (HRIM) program helps prepare students for management careers in hotels, restaurants, resorts, casinos, convention centers, health care and corporate dining facilities, educational institutions, and other commercial and non-commercial settings. Students gain a general education background, take courses in HRIM and related areas and earn 1,000 hours of work experience. The major offers two options to accommodate students’ individual career interests: Hotel, Restaurant, and Institutional Management option This option helps prepare students for management positions in any segment of the hospitality industry and is tailored to each student’s need and interests. All students will gain the analytical, interpersonal, and organizational skills they will need in order to become successful hospitality professionals. They can also choose courses that will allow them to continue pursuing a general emphasis in hospitality, or they may choose a sequence of courses that offer a specific emphasis in restaurant management, hotel management, or institutional management. Students may also pursue a concentration in areas such as financial management, human resource management, marketing, or hospitality management information......

Words: 313 - Pages: 2

Free Essay

Index Economy

...There are three sections to differ the economy system used between Angola and Switzerland which are: * Index of economy freedom * Gross National Income and Gross Domestic Product * DHL Global Competitiveness Index 2013-2014. 1. Index of economy freedom Angola According to the 2014 Index of Economy Freedom, Angola listed as 160th out of 178 countries that are under observation. With total score is 47.7, this nation has a lot of troubles in term of rule of law, open market and government spending. In law, the government uncontrolled the corruption cases and it might become the barrier for international investors to contribute Angola’s wealth because it is risky to set up the business inside the distrust government. For evidence, the corruption perception index 2012 stated that Angola ranked as 22nd country most corrupt. Besides, this country got low score in term of property right which is 15. Based on the information, Angola is one of the strong socialism countries due the government control the income of the business and fail to reform the economy since the weak rule of law and trade freedom. Same with other socialism nations, the government ignore the opinion from their citizens. In fact, the labor freedom score in 2013 was 44.8, less 15.9 point from the average Index of economic freedom while the freedom of the press was under depression as ranked 157th out of 197 nations. Therefore the policy of “property is held in common and not individually, and......

Words: 2287 - Pages: 10

Free Essay

Index Fund

...INDEX FUNDS.. FM n FS PROJECT Active and Passive Management Before we get into the details of index funds, it's important to understand the two different styles of mutual-fund management: passive and active. Most mutual funds fit under the active management category. Active management involves the art of stock picking and market timing. This means the fund manager will put his/her skills to the test trying to pick securities that will perform better than the market. Because actively managed funds require more hands-on research and because they experience a higher volume of trading, their expenses are higher. Passively managed funds, on the other hand, do not attempt to beat the market. A passive strategy instead seeks to match the risk and return of the stock market or a segment of it. You can think of passive management as the buy-and-hold approach to money management. Defn- An index fund a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market condition. An index fund is a mutual fund which merely invests in the securities in the index. It is passive, in the sense that absolutely no effort is made to produce results better than the index. HISTORY: Index funds haven't been around forever -- how did they come about? Long ago, there was a student at the University of Chicago who studied modern ideas of finance......

Words: 3426 - Pages: 14

Premium Essay

Volatility Index

...hold strategy, the returns of a rebalanced portfolio is higher for various levels of volatility. The rebalancing premium is highest when correlation is low and volatility is high and the premium is lowest when correlation is highest and volatility is low. In the latter situation the buy and hold can be a better strategy. Another important way to cope with volatility is by hedging and leveraging with call and put options. In such situations where the clients are ready bear 10% volatility but not 30%, it would be a good strategy to combine long put options and short call options and make up a portfolio with 10% volatility. Over the past 10 years such portfolios had significantly higher risk-adjusted returns than the most outperformance index during 2001-08. Moreover the premiums from the sale of the call options can be used to offset the price of the put options constructed. The leveraged ETFs also help fight volatility....

Words: 556 - Pages: 3

Free Essay

Price Index

...STATISTICS ASSIGNMENT-I What methods of Index Number calculation is used to calculate Cost of Living Index ? Introduction: An INDEX NUMBER measures the relative change in price, quantity, value, or some other item of interest from one time period to another. Classification of index numbers: According to purpose for which index numbers are used are classified as below. i) Price index number ii) Quality index number iii) Value index number iv) Special purpose index number Price index number: Price index number measures the changes in the price level of one commodity or group of commodities between two points of time or two areas. Ex: Wholesale price index numbers, Retail price index numbers, Consumer price index numbers. Quantity index number: Quantity index numbers measures the changes in the volume of production, sales, etc in different sectors of economy with respect to time period or space. Note: Price and Quantity index numbers are called market index numbers. Methods of constructing index numbers: A large number of formulae have been derived for constructing index numbers. They can be 1) Unweighted indices a) Simple aggregative method b) Simple average of relatives. 2) Weighted indices a) Weighted aggregative method b) Weighted average of relatives Weighted index is preferred over unweighted index as rational weights are assigned to various items in explicit fashion. Below are the......

Words: 673 - Pages: 3

Premium Essay


...Dow Jones Industrial AverageTM Stated Objective To represent large and well-known U.S. companies. Covers all industries with the exception of Transportation and Utilities. Key Features — The index is maintained by the Averages Committee. — Components are added and deleted on an as-needed basis. For the sake of continuity, such changes are rare, and typically occur following corporate acquisitions or other significant changes in a component company's core business. When one component is replaced, all of them are reviewed. — While stock selection is not governed by quantitative rules, a stock typically is added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors. Maintaining adequate sector representation within the index is also a consideration in the selection process. — The index is price weighted. — The Dow Jones Industrial AverageTM was first calculated on May 26, 1896. Descriptive Statistics Market Capitalization (Billions) ComponentCurrency Number | Float-Full Adjusted Mean Median Largest Smallest | USD 30 | 5,016.6 4,769.7 159.0 137.8 412.4 34.2 | Data calculated as of end of October, 2014. Mean, median, largest component and smallest component values are based on float-adjusted market......

Words: 3120 - Pages: 13

Premium Essay

Index of Refraction

...Investigating the index of refraction of a semicircular acrylic plastic block | A1 | A2 | A3 | EX | | | | A | | | | EV | | | | Name: _Felix Koay_ Date: March 5th, 2015 Topic: 4.3 Design In this experiment you will investigate the relationship between the angle of incidence and the angle of refraction of a ray of light when it passes through a semicircular piece of acrylic. An initial hypothesis would suggest that as you increase the angle of incidence, the angle of refraction would also increase, but certainty not proportionally. During the physics lessons you learnt the relationship between the angle of incidence θi and the angle of refraction θr is given by Snell’s law, which states that Where n1 is the refractive index of the medium from where the ray of light enters a different medium and n2 is the refractive index of that different medium. (Usually called medium 1 and medium 2). In order to verify this law experimentally, you could design an experiment based on that relationship. Selecting the right variables would allow to plot a graph of sin θr against sinθi and the gradient of the line would allow you to determine the value of the index of refraction of the piece of glass. The next sketch graph justifies this statement. With the aid of the gradient, you could determine an experimental value of index of refraction of the acrylic block. This result could be......

Words: 2230 - Pages: 9

Free Essay

Gini Index

...GINI Index GINI index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The GINI index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a GINI index of 0 represents perfect equality, while an index of 100 implies perfect inequality. GINI of Income A table containing the GINI indicator of income of Bangladesh over the years is given below: Year | National | Rural | urban | 1973-74 | .36 | .35 | .38 | 1981-82 | .39 | .36 | .41 | 1983-84 | .36 | .35 | .37 | 1985-86 | .38 | .36 | .37 | 1988-89 | .38 | .37 | .38 | 1991-92 | .39 | .36 | .40 | 1995-96 | .43 | .38 | .44 | 2000 | .45 | .39 | .50 | 2005 | .47 | .43 | .50 | 2010 | .46 | .43 | .45 | Table: GINI of income for Bangladesh from 1973 to 2010 A graphical representation showing the comparative difference among national rural and urban GINI for income in Bangladesh is given below: Figure: Income GINI index by rural urban area GINI of Expenditure A table containing the GINI indicator of Expenditure of Bangladesh over the years is given below: Year | National | Rural | Urban | 1991-1992 | .26...

Words: 388 - Pages: 2

Free Essay

Telecom Index

...India's active internet population access the web via mobile phones. Total number of Internet subscribers rose from 165 million in 2013 to nearly 260 million at the end of Jun-14. The data penetration rate in India was 28% last year. High prices of 3G data cards, low awareness, reasons ICR, lack of spectrum, Dot Defence issues and less requirement of high Speed data were the main reasons of low 3G penetration in India. The data usage is expected to grow in India since the prices of smartphones are falling. 4G has already been rolled out in some cities of India and its acceptance is still not well predicted. LTE has mind-boggling opportunities but it faces substantial hurdles like absence of compatible 4G handsets, pricey data plans, expensive dongles and customer premise equipment....

Words: 298 - Pages: 2

Premium Essay

Databases: Identifying Index Placement

...This assignment helps you understand what table columns deserve an index through a series of exercises on a database schema. You do not type SQL in this assignment, but rather identify which columns deserve indexes, the type of index it deserves, and why. Correct placement of indexes is absolutely critical to database performance. All but the smallest of databases would have terrible performance if no indexes were assigned to any of its table columns. An index is a physical construct that serves two purposes – speeding up data retrieval and enforcing uniqueness. Indexes are not modeled in logical entity-relationship diagrams, because indexes do not operate at the logical level of abstraction, as do tables and table columns. While the primary purpose of creating an index is to speed up data access, modern relational DBMS also support a type of index that additionally enforces a uniqueness constraint. A uniqueness constraint can be assigned to a table column directly, or is indirectly assigned to a table column when it is assigned a primary key constraint. While a uniqueness constraint is a logical construct, many modern relational DBMS physically implement this constraint through an index. You might reasonably ask the question, “Why not simply add indexes to every column in the schema?” After all, then we would not need to concern ourselves with index placement. The primary reason is that while indexes speed up reading from the database, indexes slow down writing to the......

Words: 2196 - Pages: 9

Premium Essay

Index Fund

...Topic 2 : Should retail investors invest in index-tracker funds rather than actively-managed funds? Topic 2 : Should retail investors invest in index-tracker funds rather than actively-managed funds In recent years, investment has been interested by the majority of people more than in the past as basically everyone would like generate income and try to find the ways that can actually make money. Not only do investors need to know more knowledge that how to make money investing, but also they have to update news which has information about money’s movement. Moreover, the majority of investors is supposed to follow international news and monitor that show their money in real time. In today’s world, there are many capital markets for investing because if the number of investors increases, it will make the number of investment products in the capital market increased. Thus, investors in these days are supposed to have the way in order to choose which stock will make them make the most investment return. Then, there are two investing’s types in funds for retail investors in order to invest between index- tracker funds and actively- managed funds and most investors are supposed to understand and know which one they have to use. This essay will be discussed investing in index-tracker funds and actively-managed funds that follow by pros and cons, and also provide knowledge that why are retail investors supposed to put their money in index-tracker funds rather than in......

Words: 1732 - Pages: 7

Premium Essay

Index Funds

...An "index fund" describes a type of mutual fund or investment trust whose investment objective typically is to achieve approximately the same return as a particular market index. An Exchange Traded Index Fund is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETIFs experience price changes throughout the day as they are bought and sold. ETIFs, commonly referred to as index-based ETFs, are designed to track the performance of their specified indexes or, in some cases, a multiple of inverses of their indexes. Some people will agree that international investments is good. It allows investors to reduce the risk of their portfolio, but still allowing them with additional profit potentail. If you have the money to spend you would suggest that you invest in international investments. The return and the risk of an investment will depend on the actual currency that was used. The exchange Traded Funds passive nature is a necessity: the funds rely on an arbitrage mechanism to keep the prices at which they trade roughly in line with the net asset values of their underlying portfolios. For the mechanism to work, potential arbitragers need to have full, timely knowledge of a fund's holdings. ETFs are different from Mutual funds in the sense that ETF units are not sold to the public for cash. Instead, the Asset Management Company that sponsors the ETF (Fund) takes the shares of companies comprising the...

Words: 688 - Pages: 3