Which of the following is not a characteristic of Index number
(A) They are specialized averages
(B) They measure the effect of change over a period of time
(C) It follows the concept of probability
(D) They are used to feel the pulse of the economy
(E) Cramer Rule is a part of index number
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (C), (E) only
(C) Index numbers do not deal with probability, they are deterministic statistical tool.
(E) Cramer's rule is a method used in solving linear equations and has no direct relation to index numbers.