An index number is valuable because:

Question

Quizplus · Accepted Answer

Index numbers provide a meaningful measurement scale that allows for the calculation of percentage changes. This can be helpful in analyzing trends and making comparisons over time. While index numbers may not necessarily provide critical information at the level of every individual index, they can still be useful in providing insight into overall trends and changes in a particular market or industry. Additionally, index numbers are often more stable than the data they reflect, as they are typically based on a weighted average of multiple individual data points.

An Index Number Is Valuable Because