Question

An index number is called a simple index when it is computed from:

• A. Single variable
• B. Bi-variable
• C. Multiple variables
• D. None of them

Answer 1

The correct option is A Single variable

$\Rightarrow$ An index number is called a simple index when it is computed from : $Singlevariable$.

$\Rightarrow$ Simple index numbers grant equal importance to all items no matter what share it has. In other words, it considers each item to be equal with respect to the given variable.

$\Rightarrow$ A simple index number is a number that measures a relative change in a single variable with respect to a base.