Part of Speech

Noun

Pronunciation

/ˈɪn.dɛks ˈnʌm.bər/

Definitions

• An index number is a numerical value used to represent changes in a variable or a group of related variables over time or in comparison to a standard or base value. It is often used in statistics and economics to measure relative changes.
• In economics, it is used to measure the change in the price of goods and services over time (e.g., the consumer price index).

Usage Examples

• The index number of retail prices rose by 2% last month.
• To calculate inflation, economists often use the consumer price index as an index number.

Etymology

The term "index" comes from the Latin "index," meaning "one who points out," while "number" comes from the Latin "numerus," meaning "a numeral or quantity." The combined term refers to a numerical indicator used to represent changes or comparisons.

Synonyms

• Indicator
• Measure
• Ratio
• Statistical number

Antonyms

• Static value
• Unchanging number

Translations

Regional Pronunciation Variations

US: /ˈɪn.dɛks ˈnʌm.bər/ — UK: /ˈɪn.dɛks ˈnʌm.bər/ (similar pronunciation)

Historical Usage

Index numbers have been used in economics and statistics for centuries. Their primary purpose was to provide a way to quantify and compare economic data, such as inflation rates and price changes, in an easily interpretable form. The concept of index numbers dates back to the 18th century when early economists like William Playfair began graphing economic data.

Cultural Nuances

In modern times, index numbers are crucial in fields like economics, finance, and research, helping governments and organizations make informed decisions. They can also reflect societal trends, such as the rise in the cost of living or the fluctuation in employment rates, and are integral in global economic assessments.

More Information

An index number is used to simplify and aggregate complex data. By comparing it with a base value, it can represent percentage changes over time. Index numbers are key tools in statistical analysis, serving as a benchmark for understanding fluctuations in prices, quantities, and other factors. They are commonly used in calculating price indices, such as the Consumer Price Index (CPI), and for stock market indices like the Dow Jones Industrial Average (DJIA).