Which of the following statements are correct ?
(A) Index number are free from units
(B) Index number represents specialised averages in percentage
(C) $P_{01}=\frac{∑P_0}{∑P_1}×100$
(D) Index number are helpful in formulating and adopting appropriate economic policies
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (D) Only
(A) Index numbers are relative measures and do not have any units.
(B) Index numbers summarize data using a specialized form of weighted or on weighted averages.
(D) Index numbers help in economic planning by tracking inflation and etc.