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Question -

In most of the weighted index numbers the weight pertains to
(i) base year
(ii) current year
(iii) both base and current year



Answer -

(i) In general, the base period weight is preferred in calculating the weighted index number but as per Laspeyre’s method it uses the base year quantity as weight, Paache uses current year quantities as weight and Fisher’s Index Method uses both base and current year quantities.

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