The base year for an index number is
A)determined by the year the variable equals exactly 100.
B)arbitrarily chosen for the specific purpose.
C)declared by the federal government.
D)dependant upon the type of data.
E)the year in which 2 or more index numbers are equal to 100.

Question

Quizplus · Accepted Answer

The base year for an index number is arbitrarily chosen for the specific purpose. It is chosen to provide a point of reference for comparison with other years.

The Base Year for an Index Number Is