Different Methods of Computing an index Number

So far, we discussed the methods of computing the index numbers for a number of years at a time. Now, we shall discuss the various methods of computing an index number for a particular period on the basis of a given base period. For this, we have several methods before us which can be shown in the form of a chart as under:

Thus, in toto, we have eleven different methods of computing an index number which are as follows:

• Simple aggregative method
• Simple relative method
• General weighted aggregative method
• Weighted aggregative method of Laspeyre
• Weighted aggregative method of Paasche
• Weighted aggregative method of Fisher
• Weighted aggregative method of Drobish and Bowley
• Weighted aggregative method of Marshall and Edge worth
• Weighted aggregative method of Walsch
• Weighted aggregative method of Kelley, and
• Weighted relative method