Foundations of Index Numbers for Economics and Statistics

Understanding how to measure changes in economic variables over time is a foundational skill in statistics and economics. This written course guides you through the core concepts of index numbers, helping you grasp how inflation, cost of living, and price trends are calculated and analyzed. You will transition from basic mathematical definitions to confidently solving complex statistical problems. What you'll learn: Understand the fundamental purpose, characteristics, and limitations of index numbers; Calculate simple and weighted index numbers using Laspeyres, Paasche, and Fisher formulas; Apply the consumer price index and wholesale price index formulas to real-world data; Solve value, quantity, and price relative calculations step-by-step; Test the adequacy of index numbers using time reversal and factor reversal methods; Practice constructing chain base index numbers and shifting base years. The course begins with clear, foundational definitions of economic indicators before moving systematically into mathematical formulas and practical statistical scenarios. This course is designed for absolute beginners, high school students preparing for economics exams, and introductory college students with no prior advanced statistical background. Start reading today to build a strong, practical foundation in economic statistics.