Which feature is most suitable for selecting a base year for an index number?
Correct answer: C. A normal and stable year
- A. An unusually prosperous year
- B. An unusually depressed year
- C. A normal and stable year
- D. The latest available year
Explanation
A normal and stable year provides a representative basis for comparison. An unusually high or low year can distort the movements shown by the index.
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