Question
Issues in the construction of Index Numbers
Answer :
Word Count : 250
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The construction of index numbers in business research is a complex process that involves several methodological and practical challenges. One major issue is the selection of the base period. Choosing an inappropriate or outdated base period can distort the representation of changes over time and affect the comparability of results. The selection of items to be included in the index is another critical issue. Researchers must ensure that the chosen items accurately reflect the underlying economic or business phenomena; otherwise, the index may provide misleading conclusions. Assigning weights to different components is also
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