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Cambridge IGCSE Statistics practice

What is a key limitation of a weighted aggregate index number?

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MCQ

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cambridge_mcq

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Topic

Index numbers

Exam-style question

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What is a key limitation of a weighted aggregate index number?.

  1. A.It cannot combine multiple items.
  2. B.It assumes weights remain constant despite changes in consumption patterns.
  3. C.It ignores the importance of different items.
  4. D.It always updates weights automatically.

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Paper 1 structured question: Index numbers

Paper 1Statistical Techniques3 marks

Description

Weighted Aggregate Index Number Context

The index uses weights from last year to combine price changes of several items. However, consumption patterns have shifted this year.

  1. a

    Explain why the weighted aggregate index number may not accurately reflect current changes in consumption.

    Aim for approximately 3 distinct marking points.

    [3]