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    Statistics for Business and Economics Study Set 2
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    Exam 20: Index Numbers
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    The Reason Why Weights Are Used in an Aggregate Index
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The Reason Why Weights Are Used in an Aggregate Index

Question 3

Question 3

Multiple Choice

The reason why weights are used in an aggregate index is to


A) insure that all items have an influence on the index which is relative to their respective importance
B) insure that expensive items are considered more heavily
C) insure that current prices will influence the index more than base prices
D) None of these alternatives is correct.

Correct Answer:

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