Question

What are the problem arising in constructing index numbers

Answer 1

Index number for the base period or year is always taken to be 100. Selecting items : The items or data to form basis of index numbers, however, entirely depends on the purpose for which the index number is computed. Every item cannot be just included in the construction of the index numbers.

Answer 2

Answer:

Thank you for your question. let me help in finding the true answer.

 

There are many difficulties of arising in constructing index numbers. They are given below.

Problem of selecting base period.

problem of collecting prices.

Problem of selecting the things or commodities.

Problem of selecting the method of average.

problem arising from changing overtime.

Problem of weight assigning.

Also, difficulty of comparison internationally.

Difficulty of comparing different places.

I hope this will help you