Chain base index numbers are particularly useful for analyzing:
A. Long-term structural changes
B. Base year selection
C. Short-term period-to-period fluctuations
D. International comparisons
Answer: Option C
Solution (By JKSSB Mock Tests)
Chain indices highlight recent changes by using the previous period as base, making them sensitive to short-term dynamics like monthly inflation, though less suitable for long-term trend analysis.
Explanation:
Geometric mean = (4 × 9 × 16)^(1/3) = (576)^(1/3) = 8. It is the nth root of the product of n observations, useful for averaging ratios or growth rates.
No comments yet. Be the first to start the discussion!