As Chief Statistician for the Municipality, You Want to Compute

Multiple Choice

As chief statistician for the municipality, you want to compute and publish every year a special-
Purpose index, which you plan to call Index of Municipal Business Activity. Three series seem to
Hold promise as the basis for the index; namely, the price of wheat, the number of new automobiles
Sold and the rate of money turnover for the municipality (published by a local bank) . Arbitrarily you
Decide that money turnover should have a weight of 60 percent; number of new automobiles sold,
30 percent; and the price of wheat, 10 percent.
What is the Index of Municipal Business Activity for 2010 (the base year) and for 2014?

A) 100 for 2010, 139 for 2014
B) 139 for 2010, 100 for 2014
C) 100 for 2010, 61 for 2014
D) 100 for 2010, 100 for 2014
E) 100 for 2010, 160 for 2014