Answer - it provides a meaningful measurement scale to calculate percentage changes.
an index number provides a measure of comparison between statistical data of two or more years by taking a base year. The index number provides a overall percentage change of any year with respect to base year.
In economics index number can be used to measure rate of inflation in current year with reference to previous year by taking the change in value of goods and services with respect to base year.
An index number is valuable as it can provide a single percentage of various scattered data and provides a measurement of scale.
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