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Index Numbers - Coggle Diagram

- - - - Simple arithmetic mean: arithmetic average of the simple indices.
      - Simple geometric mean: geometric root of the product of indices
      - Harmonic mean: k / Σ(1/single indices).
      - Simple aggregate mean: (Σ Values t) / (Σ Values0).
    - - The assume equal weight for all components
      - The do not allow for the comparison of heterogeneous quantities.
      - Rarely used in economics
- - - - Use base perido weights (w0i).
      - Compare the cost of quantities for the base period at current prices
      - Formula: Iᶫ = Σ(pi·qi0) / Σ(p0i·qi0)
    - - Use weight from the current period (wti).
      - Compare the cost of current quantities at current prices vs. base prices
      - Formula: Ip = Σ(pti·qti) / Σ(p0i·qti)
    - - Geometric mean between Laspeyres and Paasche
      - Formula: F = √(Laspeyres × Paasche)
      - Considered the "ideal" index