Question

8. State the four principle importance of index numbers.​

Answer 1

Answer:

In this article we will discuss about:- 1. Meaning of Index Numbers 2. Features of Index Numbers 3. Steps or Problems in the Construction 4. Construction of Price Index Numbers (Formula and Examples) 5. Difficulties in Measuring Changes in Value of Money 6. Types of Index Numbers 7. Importance 8. Limitations.

Answer 2

Explanation:

Features of Index Numbers:

The following are the main features of index numbers:

1. The construction of the price index numbers involves the following steps or problems:
2. Selection of Base Year:
3. Selection of Commodities:
4. In selecting items, the following points are to be kept in mind:

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