As Chief Statistician for the County, You Want to Compute

question 45

Multiple Choice

As chief statistician for the county, you want to compute and publish every year a special-purpose index, which you plan to call Index of County Business Activity. Three series seem to hold promise as the basis for the index; namely, the price of cotton, the number of new cars sold, and the rate of money turnover for the county (published by a local bank) . Arbitrarily you decide that money turnover should have a weight of 60 percent; number of new cars sold, 30 percent; and the price of cotton, 10 percent. What is the Index of County Business Activity for 1981 (the base year) and for 2006?

• A) 100 for 1981, 139 for 2006
• B) 139 for 1981, 100 for 2006
• C) 100 for 1981, 61 for 2006
• D) 100 for 1981, 100 for 2006