Which statement is correct for a simple index number? A)For the base year, the index is set to 0.000. B)We cannot use index numbers to compare two time series measured in different units. C)The simple relative index for period t = 5 is calculated as Y₅/Y₁. D)Weighted index numbers have few practical applications because of their complexity.

Question

Quizplus · Accepted Answer

The simple relative index for period t = 5 is calculated as Y₅/Y₁, where Y₅ is the value in period 5 and Y₁ is the value in the base period.

Which Statement Is Correct for a Simple Index Number