factor Wich are considered important for the calculation of index number
Answers
Answer:
The following important steps should be considered in constructing an index number. (i) Purpose (ii) Selection of commodities, their number and their price quotations (iii) Selection of base year (iv) Selection of the average (v) Selection of appropriate weights (vi) Selection of an appropriate formula.
Answer:
Index numbers are intended to measure the degree of economic changes over time. These numbers are values stated as a percentage of a single base figure.
Step-by-step explanation:
The following important steps should be considered in constructing an index number. (i) Purpose
(ii) Selection of commodities, their number and their price quotations
(iii) Selection of base year
(iv) Selection of the average
(v) Selection of appropriate weights
(vi) Selection of an appropriate formula.