Which Statement Concerning the Construction of a Composite Index Is

question 7

Multiple Choice

Which statement concerning the construction of a composite index is NOT true?

• A) Changing patterns or trends in consumption can cause problems in composie index construction
• B) Technically, it does not matter which time period is used as a base - although a fairly recent data is preferred
• C) Determining weights can be complex and may need a separate piece of work to do accurately
• D) When collecting data for a composite index, quantities are normally easier to obtain than prices