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Which of the following is the variation within two or more variables studied by the index?
  • a)
    Price index.
  • b)
    Composite index.
  • c)
    Simple index.
  • d)
    None of the above.
Correct answer is option 'B'. Can you explain this answer?
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Which of the following is the variation within two or more variables s...
The variation within two or more variables studied by the index is referred to as a "composite index" (Option B). A composite index combines multiple variables or components into a single index number to represent overall changes.
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Which of the following is the variation within two or more variables s...
Composite index

A composite index is a statistical measure of a group of variables or indicators that are combined to represent a broader concept or phenomenon. It is used to measure the variation within two or more variables that are studied by the index. In this case, the correct answer is option 'B' - Composite index.

Price index

A price index is a measure of the average change over time in the prices paid by consumers for a market basket of goods and services. It measures the variation in prices of specific goods and services, but it does not capture the variation within two or more variables studied by the index. Therefore, option 'A' - Price index is not the correct answer.

Simple index

A simple index is a statistical measure that represents the relative change in a single variable over time. It measures the variation within a single variable, but it does not capture the variation within two or more variables studied by the index. Therefore, option 'C' - Simple index is not the correct answer.

None of the above

Since the correct answer is option 'B' - Composite index, option 'D' - None of the above is not the correct answer.

In summary, the variation within two or more variables studied by the index is captured by a composite index. A price index measures the variation in prices of specific goods and services, a simple index represents the relative change in a single variable, and none of the above options are correct.
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Which of the following is the variation within two or more variables studied by the index?a)Price index.b)Composite index.c)Simple index.d)None of the above.Correct answer is option 'B'. Can you explain this answer?
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