i. If two or more series of index numbers have the same year as the base period, then they can be compared directly. ii. 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.
iii. Canada pension plan payments and old age security pensions are periodically adjusted based on the Consumer Price Index.
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.

Question

Quizplus · Accepted Answer

All three statements are correct. Statement (i) is true because having the same base period allows for direct comparison of index numbers. Statement (ii) is accurate as it describes a method for comparing series with different base periods by converting them to a common base. Statement (iii) is correct because Canada does adjust pension payments based on the Consumer Price Index to reflect changes in the cost of living.

I If Two or More Series of Index Numbers Have