Assistant Statistical Officer Paper II · 10 Time Series & Index Numbers · APPSC Paper I
10.1 Time series and index numbers notes
3 notes, in reading order.
- 10.1.1Time series: components, measuring trend (graphic, semi-averages, moving averages, least squares) and seasonal variation
A time series is data arranged in order of time; its movement is split into trend (T), seasonal (S), cyclical (C) and irregular (I) parts, and the trend is measured by the graphic, semi-averages, moving averages or least squares method.
Advanced · 11 min · Read here - 10.1.2Index numbers: types and methods (Laspeyres, Paasche, Fisher, Marshall-Edgeworth), tests of adequacy
An index number measures the relative change in a group of related variables (prices, quantities, values) between a base period (= 100) and a current period; the weighted formulas of Laspeyres (base-year quantities), Paasche (current-year quantities) and Fisher (their geometric mean) are judged by the unit, time reversal, factor reversal and circular tests.
Advanced · 10 min · Read here - 10.1.3Base shifting, splicing and deflating index numbers; cost of living index and limitations
Base shifting re-expresses an index on a new base year, splicing joins an old and a new series into one continuous series, deflating turns money values into real values by dividing by a price index, and the cost of living (consumer price) index measures the change in the cost of a fixed basket bought by a particular class of people.
Advanced · 10 min · Read here
Practise Time series and index numbers. Questions with answers explained, from the same topics.
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