What is an Index Number?
An index number is a way to show how much something has changed over time. Think of it like a special number that helps us compare things easily.
Why Do We Use Index Numbers?
We use index numbers to:
- See changes in prices over time (like how much things cost)
- Compare different things (like the price of apples this year vs last year)
- Understand how things are getting better or worse (like weather, prices, or even your school grades!)
How Does It Work?
Imagine you have a basket of apples. Last year, a single apple cost £1. If this year, the price of an apple is £1.20, we can use an index number to show how much the price has changed.
To find the index number, we use this formula:
$$
\text{Index Number} = \left( \frac{\text{New Value}}{\text{Old Value}} \right) \times 100
$$
Example
- Last Year: 1 apple = £1 (Old Value)
- This Year: 1 apple = £1.20 (New Value)
Now, let’s plug in the values:
$$
\text{Index Number} = \left( \frac{1.20}{1} \right) \times 100 = 120
$$
This means the index number is 120. Since it’s over 100, it means the price has gone up!
Key Rules for Index Numbers
- Base Year: The first year you compare is called the base year. The index number for that year is always 100.
- New Value and Old Value: Always identify which is the new value (current year) and which is the old value (previous year).
- Multiplication by 100: Always multiply by 100 to express the index number as a percentage.
Tips and Tricks
- If the index number is over 100, it means things have gotten more expensive.
- If the index number is under 100, it means things have gotten cheaper.
- Remember to always keep your numbers clear and double-check your calculations!
Questions
Easy Level Questions (1-20)
- What do we call the year we start comparing prices?
- What is the index number for the base year?
- If last year an apple was £2 and this year it is £2.50, what is the old value?
- What is the new value if the old value is £1 and the index number is 150?
- Calculate the index number if the old value is 4 and the new value is 8.
- If the index number is 120 and the old value is £5, what is the new value?
- What does it mean if the index number is less than 100?
- If the price of a toy was £10 last year and £12 this year, what is the index number?
- Is an index number of 90 considered an increase or decrease in price?
- If an old value is 20 and the new value is 30, what is the index number?
- What happens to the index number if the new value is the same as the old value?
- Calculate the index number if the old value is 30 and the new value is 45.
- What does an index number of 100 mean?
- If you bought a book for £8 last year and £10 this year, what is the index number?
- What is the index number if an old value is £15 and the new value is £12?
- How would you show a price increase using an index number?
- If the old value is £50 and the new value is £60, what is the index number?
- What is the formula to calculate the index number?
- If the price of a sandwich was £3 last year and £2 this year, what is the index number?
- Is an index number of 110 a good sign for prices?
Medium Level Questions (21-40)
- If an old value is £25 and the new value is £30, calculate the index number.
- The index number is 130, and the old value is £20. What is the new value?
- If the price of a bike was £200 last year and £250 this year, what is the index number?
- Calculate the index number if the old value is 60 and the new value is 45.
- What does an index number of 80 indicate about price changes?
- If the old value is £35 and the new value is £42, what is the index number?
- If the index number is 150 and the old price is £30, what is the new price?
- Calculate the index number for a shirt that cost £15 last year and £18 this year.
- If the price of a game was £25 last year and is £22 this year, what is the index number?
- What does it mean when the index number is exactly 100?
- If an old value is 80 and the new value is 64, what is the index number?
- Calculate the index number if the old value is £10 and the new value is £15.
- If the price of shoes increased from £50 to £60, what is the index number?
- What happens to the index number if the new value is lower than the old value?
- If the old value is £12 and the new value is £15, what is the index number?
- Calculate the index number if an old value is 20 and the new value is 10.
- If the index number is 90, what does that tell us about the prices?
- What is the new price if the old price was £40 and the index number is 125?
- If the price of a bus ticket was £2 last year and £2.50 this year, calculate the index number.
- What does an index number of 200 signify?
Hard Level Questions (41-60)
- If an old value is £100 and the new value is £150, find the index number.
- The index number is 200, and the old value is £50. What is the new value?
- If a textbook cost £30 last year and £42 this year, what is the index number?
- Calculate the index number if the old value is £80 and the new value is £64.
- If the index number is 75, what does that tell us about the value?
- If the old value is 90 and the new value is 108, what is the index number?
- Calculate the index number for a laptop that cost £400 last year and £500 this year.
- If the price of a coffee was £3 last year and £3.60 this year, what is the index number?
- What is the new value if the index number is 140 and the old value is £200?
- If a bike cost £150 last year and £120 this year, what is the index number?
- How do you find the percentage increase using the index number?
- If an old value is 75 and the new value is 90, calculate the index number.
- If the index number is 110 and the old value is £20, what is the new value?
- Calculate the index number if the old value is £15 and the new value is £18.75.
- If the price of a meal was £25 last year and is £30 this year, what is the index number?
- What does an index number of 50 indicate about price changes?
- If the old price of a concert ticket was £40 and it is now £50, find the index number.
- If the index number is 180 and the old value is £70, what is the new value?
- What happens to the index number when the new value is the same as the old?
- If the old value is £90 and the new value is £81, what is the index number?
Answers
Easy Level Answers
- Base Year
- 100
- £2
- £1.50
- 200
- £6
- It means prices have decreased.
- 120
- Decrease in price.
- 150
- The index number remains 100.
- 150
- It means there is no change in price.
- 125
- 80
- By showing a number over 100.
- 120
- \text{Index Number} = \left( \frac{\text{New Value}}{\text{Old Value}} \right) \times 100
- 66.67
- Yes, it shows an increase.
Medium Level Answers
- 120
- £26
- 125
- 75
- Prices have decreased.
- 120
- £45
- 120
- 88
- No change in price.
- 80
- 150
- 120
- Prices have decreased.
- 125
- 50
- Prices have decreased.
- £50
- 125
- Prices have doubled.
Hard Level Answers
- 150
- £100
- 140
- 80
- Prices have decreased.
- 120
- 125
- 120
- £280
- 80
- Subtract the old value from the new, then divide by the old value.
- 120
- £22
- 125
- 120
- Prices have significantly decreased.
- 125
- £126
- The index number stays at 100.
- 90
Feel free to ask more questions or practice with these topics! Remember, index numbers help us understand how prices and values change over time. Happy learning!