Classification of Index Numbers:
Index number can be classified as follows
1. Price Index Number: It measures the general changes in the retail or wholesale price level of a particular or group of commodities.
2. Quantity Index Number: These are indices to measure the changes in the number of goods manufactured in a factory.
3. Cost of living Index Number: These are intended to study the effect of change in the price level on the cost of living of different classes of people.
