A scaling factor is used to_________________?
Correct answer: C. Change the base year
- A. Change a simple index to a weight index
- B. Convert the Paasche index to a Laspeyres index
- C. Change the base year
- D. change an aggregate index to a weighted index
Explanation
Multiplying an index by a scaling factor changes its reference base while preserving the measured relative movement. It does not convert one index formula into another type.
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