Question

Which method is more appropriate to calculate the Index Number in the given news
article –Simple Average of Price Relatives or Weighted Average of Price Relatives? Also
write the formula for the method which is more appropriate as per your opinion.

Answer 1

Answer:

Purpose of the Index Number:

Selection of Commodities:

Selection of Prices:

Selection of an Average:

Selection of Weights:

Selection of the Base Period:

Selection of Formula:

Explanation:

hope it will help you