Question

price relatives used in the construction of index numbers are pure number true or false​

Answer 1

Answer:

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Explanation:

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Answer 2

Answer:

Price relatives used in the construction of index numbers are pure numbers, this statement is true.

Explanation:

Price relations are purely numerical, thus the units of measurement used for the commodities included in the calculation of the index numbers have no bearing on the value of the average price relative index. Price relative is the percentage difference between a variable's value in the current year and its value in the base year. Since an index number lacks a unit, it is often referred to as a pure number. The selection of an appropriate average is necessary for the creation of index numbers. As opposed to other averages, the arithmetic mean is typically utilised in the creation of index numbers since it is easy to calculate.

As a result, the price relatives that are utilised to create index numbers are only pure numbers.