Question

29)
Weighted Index Number is superior to simple index number because
(a) Weights are arbitrary to the extent of madness
(b) Weights are generally uniform in nature
(c) Weights are assigned as per importance of commodities.
(d) Weights are assigned as per choice​

Answer 1

HELLO DEAR,

GIVEN:-

Weighted Index Number is superior to simple index number because

(a) Weights are arbitrary to the extent

of madness

(b) Weights are generally uniform in

nature

(c) Weights are assigned as per

importance of commodities.

(d) Weights are assigned as per

choice!

ANSWER:-

(c) Weights are assigned as per

importance of commodities.

It is because ,when all commodities are not of equal importance we assign weight to each commodity relative to its importance and the index number computed from these weights is called a weighted index number.

THANKS.

Answer 2

They are superior because of the nature of commodities.

• The simple index method is relatively easier as compared to the weighted. The weighted method is a little more complex.
• However, both of them differ as per the assigning of commodities.
• Any product is assigned an equal weight in simple index numbers. Various commodities are given appropriate weights in weighted.