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

Question

Quizplus · Accepted Answer

The reason weights are used in an aggregate index is to ensure that all items have an influence on the index which is relative to their respective importance. This means that items that are more important and have a larger impact on the economy will be given a higher weight than less important items. This helps to create a more accurate representation of the overall health of the economy.

The Reason Weights Are Used in an Aggregate Index Is