Relationships between indicators in an index should be perfectly correlated

Name: Relationships between indicators in an index should be perfectly correlated
Brand: Quizplus
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Quizplus · Accepted Answer

Relationships between indicators in an index may not be perfectly correlated. Factors that contribute to the index may have varying degrees of influence and may interact with each other in complex ways. Therefore, it is unlikely for all indicators to have a perfect correlation.

Relationships Between Indicators in an Index Should Be Perfectly Correlated