indeksid

Indeksid, the Estonian term for indices, are numerical indicators used to measure relative change over time. They summarize an entire set of observations into a single index value that can be compared across periods. In economics and statistics, indices are anchored to a base period in which the index is assigned a value of 100.

Common types include price indices, such as the consumer price index (CPI), the producer price index (PPI), and the GDP deflator. In finance, stock market indices track the performance of a group of companies. In computing and information systems, indices refer to data structures that improve the speed of data retrieval, such as database indices or search indices.

Calculation typically follows the formula index_t = (value_t / value_base) × 100. Weights may be applied to reflect the relative importance of items in the basket. Common methods include Laspeyres, Paasche, and Fisher indices, each with its own approach to weighting and base selection.

Applications include monitoring inflation, adjusting wages and contracts, indexing pensions, policy analysis, and historical comparisons. Limitations include sensitivity to the base year and item selection, substitution and quality changes, and potential bias if the basket does not reflect current consumption patterns. Indices are best interpreted as directional indicators rather than precise measures of a single quantity.