Which Statement Is Correct for a Simple Index Number

question 58

Multiple Choice

Which statement is correct for a simple index number?

• A)For the base year, the index is set to 0.000.
• B)We cannot use index numbers to compare two time series measured in different units.
• C)The simple relative index for period t = 5 is calculated as Y₅/Y₁.
• D)Weighted index numbers have few practical applications because of their complexity.

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Definitions:

Contingency Plans

Prepared strategies to address unforeseen or unexpected events, ensuring that operations can continue or be quickly restored.

Crisis Management

The process by which an organization deals with major unpredictable events that threaten to harm the organization or its stakeholders.

Crisis Management

The process and strategies used by an organization to deal with sudden and significant negative events that have the potential to harm the organization.

Intuitive Feelers

Individuals who primarily rely on intuition and emotions to make decisions and understand the world around them.