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## Measuring Trends: Index Numbers in Class 11

# Index number is a specialised average used to measure the change in the level of any variable with respect to time or some other variable.

Index numbers are expressed as a ratio or a percentage.

They help in forecasting economic activity.

The types of index numbers are

Unweighted index numbers

i) Simple Aggregate index numbers

ii) Simple average of Price Relatives

Weighted index numbers

i) Weighted Aggregate

ii) Weighted Average of Price Relatives

# Moving Averages

Moving Averages are used in cyclical variations to eliminate fluctuations due to cyclical changes in time series.

We calculate

3 yearly moving averages

5 yearly moving averages

4 yearly moving averages

6 yearly moving average

7 yearly moving average

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