How do you define “index numbers”? Narrate the nature and types of index number with adequate example

Index numbers are meant to study the change in the effects of such factors which cannot be measured directly. According to Bowley, “Index numbers are used to measure the changes in some quantity which we cannot observe directly”. For example, changes in business activity in a country are not capable of direct measurement but it is possible to study relative changes in business activity by studying the variations in the values of some such factors which affect business activity, and which are capable of direct measurement.

What to you understand by concept of probability? Explain various theories of probability.

Introduction to Probability

We live in the world of uncertainties. Man is surrounded by situations which are not fully under his control. The nature commands these situations. A person on a road does not know whether or not he will reach his destination safely. A patient in the hospital is never sure about his survival after a delicate operation. What will be the weather conditions tomorrow, nothing is known with certainty but we always like to have an idea about the weather conditions in future. A flight will be in time, the road will be clear or there will be some traffic jam. We face this of problem in our daily life. Man is always curious to know as to what will happen in future. The things which happen are important for the man today. These things are based on what is called chance or probability. If we have some numerical measure of uncertainty, this measure is called probability. We may find a numerical measure for a bulb to be defective, some numerical measure for the rain to fall. The belief or confidence associated with a certain situation can also be measured. It is also called probability. In statistics there are various situations where uncertainty in involved.

Explain the meaning and type of ‘Data’ as applicable in any business. How would you classify and tabulate the data, support your answer with example

Everybody collects, interprets and uses information, much of it in numerical or statistical forms in day-to-day life. It is a common practice that people receive large quantities of information everyday through conversations, televisions, computers, the radios, newspapers, posters, notices and instructions. It is just because there is so much information available that people need to be able to absorb, select and reject it. In everyday life, in business and industry, certain statistical information is necessary and it is independent to know where to find it how to collect it. As consequences, everybody has to compare prices and quality before making any decision about what goods to buy.  As employees of any firm, people want to compare their salaries and working conditions, promotion opportunities and so on.  In time the firms on their part want to control costs and expand their profits.