Question

discuss 4 limitations of index number​

Answer 1

Answer:

Hi..

Explanation:

They are simply rough indications of the relative changes. The choice of representative commodities may lead to fallacious conclusions as they are based on samples. There may be errors in the choice of base periods or weights, etc.

Answer 2

Answer:

Limitations of Index Numbers

• They are simply rough indications of the relative changes.
• The choice of representative commodities may lead to fallacious conclusions as they are based on samples.
• There may be errors in the choice of base periods or weights, etc.
• There may be errors in the choice of base periods or weights, etc.Comparisons of changes in variables over long periods are not reliable.