Develop the output indices of the Nouveau Cattle...

Develop the output indices of the Nouveau Cattle Slaughtering Plant (base year 2014). $$ \begin{array}{|ccc|} \hline \text { Year } & \begin{array}{c} \text { Pounds of Cattle } \\ \text { Slaughtered } \end{array} & \text { Output Index } \\ \hline 2013 & 180,000 & \\ 2014 & 250,000 & \\ 2015 & 200,000 & \\ \hline \end{array} $$

Develop the output indices of the Nouveau Cattle Slaughtering Plant (base year 2014).
$$
\begin{array}{|ccc|}
\hline \text { Year } & \begin{array}{c}
\text { Pounds of Cattle } \\
\text { Slaughtered }
\end{array} & \text { Output Index } \\
\hline 2013 & 180,000 & \\
2014 & 250,000 & \\
2015 & 200,000 & \\
\hline
\end{array}
$$

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Key Concepts

Output Index

An output index is a dimensionless number that represents the level of output in a given period relative to a specified base period. It is calculated by taking the ratio of the current period's output value to that of the base period and multiplying by a constant (typically 100), which facilitates comparison across different time periods.

Base Year

The base year is the reference period against which other periods are compared in index number calculations. In this context, the output in the base year is normalized to 100, and values in other years are expressed in relation to this level. The selection of an appropriate base year is crucial as it serves as the benchmark for interpreting the performance of subsequent periods.

Index Number Calculation

Index number calculation involves a standardized method of measuring change over time. By dividing the current output value by the base period output value and multiplying by 100, the resulting index reflects the percentage change relative to the base. This method is widely used in economics and related fields for tracking changes in production, sales, or other quantities over time.

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