I When Two or More Series of Index Numbers to Be

question 73

Multiple Choice

i. When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base. ii. Canada pension plan payments and old age security pensions are periodically adjusted based on the Consumer Price Index.
iii. The largest component of the Canadian CPI is Food.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.