The reason why weights are used in an aggregate index is to
A)insure that all items have an influence on the index which is relative to their respective importance
B)insure that expensive items are considered more heavily
C)insure that current prices will influence the index more than base prices
D)None of these alternatives is correct.

Question

Quizplus · Accepted Answer

Weights are used in an aggregate index to ensure that all items have an influence on the index which is relative to their respective importance. This is done to make sure that the final index reflects the true importance of the individual components.

The Reason Why Weights Are Used in an Aggregate Index