Question

state the four principle importance of index number​

Answer 1

Answer:

Features of Index Numbers:

The following are the main features of index numbers:

• The construction of the price index numbers involves the following steps or problems:

• Selection of Base Year:

• Selection of Commodities:

• In selecting items, the following points are to be kept in mind:

• Collection of Prices:

Answer 2

Answer:

Index numbers are most important in economic status. An Index number defines the level of a variable relative to its level in a given period. Index numbers are also used to study the change in effects of factors which cannot be measured/ calculated directly.