PRC-2 · Chapter 9 · Question 39 of 60
Which of the following index calculation methods relies heavily on the use of sequential 'link relatives'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The Chain Index
Explanation
A chain index uses link relatives, which are calculated by comparing the current period's data strictly against the immediate preceding period, chaining them together to form a long-term index.
More Indices MCQs
- Q41When selecting a 'base year' for a price index, statisticians generally aim to pick a year that is:
- Q42What is considered a massive, practical advantage of utilizing a Chained Index over a Fixed Base Index?
- Q43What is the formula to manually calculate a 'Simple Price Relative' for a single commodity?
- Q44In the standard mathematical notation for index construction, what does the expression 'pn * q0' explicitly dictate?
- Q45If an official government price index rises from 100 in 2015 to 142 in 2024, what is the precise interpretation of this data?