What does an index number greater than 100 tell you, and one less than 100?

Greater than 100 means the price has increased since the base year. Less than 100 means it has decreased , and an index number of exactly 100 means the price has not changed.

True or False? The base year must be the earliest year in a set of index numbers.

False. Any year can be chosen as the base year, and the others are then all measured against it. An index number for 2012 can perfectly well be worked out using 2013 as the base year, in which case it comes out below 100.

What is the difference between the retail price index and the consumer price index?

Both track how the prices of everyday things change, but the RPI includes mortgage payments and the CPI does not. The RPI is used to set the interest on student loans, while the CPI is used for benefits and the state pension.

Why does using the retail price index to work out the price of petrol give only an estimate?

Because the RPI is worked out from the prices of a great many different things that people buy, rather than from petrol alone. Petrol's own price may have risen or fallen at quite a different rate from prices in general.

What is gross domestic product, and is it an index number?

Gross domestic product is the total value of all the goods and services a country produces in a period of time, reported quarterly in the UK. It is not an index number, and a country whose GDP falls for two or more quarters in a row is said to be in recession.

What does a crude birth rate of 11.3 tell you about a town?

That there were about 11.3 births for every 1000 people living in the town over the period. The word crude means the rate is worked out for the whole population at once, without being split up by age or by anything else.

Why is a crude rate worked out per 1000 people rather than given as a plain count?

Because a large town will naturally have more births than a small one, so the raw counts cannot fairly be set against each other. Dividing by the population and scaling to 1000 puts every population on the same footing, so two towns of very different sizes become comparable.

How would you work out a crude rate per 100 people instead of per 1000?

Replace the multiplication by 1000 in the formula with a multiplication by 100 . Only do this when a question actually asks for it, since a crude rate is normally given per 1000 of the population.

A town's crude birth rate is used to predict how many births it will have next year. What is being assumed?

That the crude birth rate will stay roughly where it is now. If the rate itself changes, or if the population changes in a way the calculation does not allow for, the prediction will be out.

True or False? A crude rate can be worked out for things other than births and deaths.

True. The same formula works for anything that can be counted across a population, such as marriages or the number of people unemployed. All that changes is which count goes on the top of the fraction.

GCSEStatisticsEdexcelFoundationFlashcardsProcessing, Representing & Analysing DataIndex Numbers & Rates of Change

Index Numbers & Rates of Change (Edexcel GCSE Statistics: Foundation): Flashcards

Exam code: 1ST0

1/16

0Still learning

Know0

FrontIndex Numbers
Complete the formula for an index number.
$index number = \frac{______}{price in the base year} \times______$

Was this flashcard helpful?

Cards in this collection (16)

Complete the formula for an index number.
$index number = \frac{______}{price in the base year} \times______$
The completed formula is:
$index number = \frac{current price of the item}{price in the base year} \times 100$
The index number for the base year itself always comes out as 100.
What does an index number greater than 100 tell you, and one less than 100?
Greater than 100 means the price has increased since the base year.
Less than 100 means it has decreased, and an index number of exactly 100 means the price has not changed.
A pint of milk cost 36p in the base year and costs 66p now. What is the current index number?
Divide the current price by the base year price and multiply by 100:
$\frac{66}{36} \times 100 = 183.3$
That is to 1 decimal place, and notice that an index number is written without a percentage sign.
The index number for a year is 98.4. What is the percentage change in price since the base year?
Subtract 100 from the index number, giving $98.4 - 100 = - 1.6$ as the answer.
The result is negative, so it represents a 1.6% decrease compared with the base year.
A thingummy cost £56.50 in the base year, and the index number for 2020 is 107.2. What did it cost in 2020?
Divide the index number by 100 to get the multiplier, $\frac{107.2}{100} = 1.072$ for this change.
Multiply the base year price by it, giving $56.50 \times 1.072 = 60.568$ , which rounds to £60.57 to the nearest penny.
True or False?
The base year must be the earliest year in a set of index numbers.
False.
Any year can be chosen as the base year, and the others are then all measured against it.
An index number for 2012 can perfectly well be worked out using 2013 as the base year, in which case it comes out below 100.
What is the difference between the retail price index and the consumer price index?
Both track how the prices of everyday things change, but the RPI includes mortgage payments and the CPI does not.
The RPI is used to set the interest on student loans, while the CPI is used for benefits and the state pension.
Why does using the retail price index to work out the price of petrol give only an estimate?
Because the RPI is worked out from the prices of a great many different things that people buy, rather than from petrol alone.
Petrol's own price may have risen or fallen at quite a different rate from prices in general.
What is gross domestic product, and is it an index number?
Gross domestic product is the total value of all the goods and services a country produces in a period of time, reported quarterly in the UK.
It is not an index number, and a country whose GDP falls for two or more quarters in a row is said to be in recession.
What does a crude birth rate of 11.3 tell you about a town?
That there were about 11.3 births for every 1000 people living in the town over the period.
The word crude means the rate is worked out for the whole population at once, without being split up by age or by anything else.
Why is a crude rate worked out per 1000 people rather than given as a plain count?
Because a large town will naturally have more births than a small one, so the raw counts cannot fairly be set against each other.
Dividing by the population and scaling to 1000 puts every population on the same footing, so two towns of very different sizes become comparable.
A town of 75 992 people had 783 deaths in a year. What is the crude death rate, to 3 decimal places?
Multiply the number of deaths by 1000 and divide by the total population:
$\frac{783 \times 1000}{75992} = 10.304$
So there were about 10.3 deaths per 1000 of the population that year.
A town of 75 992 people has a crude birth rate of 11.317. How many births were there that year?
Put what you know into the formula and solve for the number of births, giving $11.317 \times 75992 = 860001.464$ before dividing by 1000.
That comes to 860.001, which must be rounded to 860, because a number of births has to be a whole number.
How would you work out a crude rate per 100 people instead of per 1000?
Replace the multiplication by 1000 in the formula with a multiplication by 100.
Only do this when a question actually asks for it, since a crude rate is normally given per 1000 of the population.
A town's crude birth rate is used to predict how many births it will have next year. What is being assumed?
That the crude birth rate will stay roughly where it is now.
If the rate itself changes, or if the population changes in a way the calculation does not allow for, the prediction will be out.
True or False?
A crude rate can be worked out for things other than births and deaths.
True.
The same formula works for anything that can be counted across a population, such as marriages or the number of people unemployed.
All that changes is which count goes on the top of the fraction.

Sign up to unlock flashcards

By signing up you agree to our Terms and Privacy Policy

Previous:Using Summary StatisticsNext:Scatter Diagrams & Correlation