PRC-2 · Chapter 9 · Question 31 of 60
When maintaining a long-term index series, what is the statistical process of 'base shifting'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Changing the reference period (the base year 100) to a more recent, economically relevant year.
Explanation
Base shifting occurs when the original base year becomes obsolete due to changing consumer habits over time. The index is recalibrated so a more recent year acts as the new baseline of 100.
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