The use of index numbers requires the ____ level of measurement.
A)nominal
B)interval
C)ratio
D)ranked

Question

Quizplus · Accepted Answer

Index numbers involve the measurement of relative change, which requires a reference point or a benchmark. Since ratio level of measurement provides a true zero point, it is suitable for calculating index numbers. Nominal level only provides categorical information, ranked level lacks a standardized unit of measurement, and interval level has no true zero point.

The Use of Index Numbers Requires the ____ Level of Measurement