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The two main objectives are:
To get at a single value: Measures of central value, by considering the mass of data in one single value, enable us to get a bird's-eye view of the entire data. Thus one value can represent thousands, lakh and even millions of values. For example, it is impossible and is hardly of any use to remember the incomes of individual companies in a particular industry. But if the average income is obtained by dividing the total income by the number of companies, we get one single value that represents the entire industry.
To facilitate comparison: Reducing the mass of data to one single figure facilitates comparisons. Comparison can be made either at a point of time or over a period of time. For example, we can compare the average annual profits of different industries for a particular year, say, 20x3-x4 and thereby conclude which industry is the best or we can compare the growth percentage in sales of a particular industry for different time periods and thereby conclude as to whether the results are improving or deteriorating. Such comparisons are of immense help in framing suitable and timely policies.
What is GATT, and what is its goal? GATT is also termed as General Agreement on Tariffs and Trade. It is a treaty which seeks to decrease trade barriers among participant nation
The minimum value is the lower limit for the market value of a convertible bond. It is equal to the greater of the conversion value and the straight value. We can
Explain how the working capital management policies affect the profitability and liquidity of the firm?
Historical Developments
Constructing Index Numbers There are two approaches for constructing an index number namely the aggregates method and average of relatives method. The index constructed in eit
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Due to the complexity of the tasks involved in many projects, communication of responsibility for those tasks is often helped by means of graphical planning techniques.
The purpose of this financial analysis is to determine the economic viability during the last five years of the Lance Company and to advise our client on whether the acquisition of
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