Multiple choice

Directions: State whether the given statement is true or false.

Weighted average of relatives can be combined to form a new index.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Weighted average of relatives (like price relatives) from different items or groups can be combined mathematically to form composite indices. This is how aggregate price indices are constructed from individual component indices.

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