Which statement concerning the construction of a composite index is NOT true?
A) Changing patterns or trends in consumption can cause problems in composie index construction
B) Technically, it does not matter which time period is used as a base - although a fairly recent data is preferred
C) Determining weights can be complex and may need a separate piece of work to do accurately
D) When collecting data for a composite index, quantities are normally easier to obtain than prices

Question

Quizplus · Accepted Answer

Quantities are often harder to obtain than prices because prices are usually recorded and readily available in the market, whereas quantities can vary widely and may not be as systematically tracked or reported.

Which Statement Concerning the Construction of a Composite Index Is