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Paper 1Statistical Techniques3 marks
A weighted aggregate index number is calculated using fixed weights based on consumption patterns from a previous year. Over time, consumers change their buying habits, purchasing more of some items and less of others.
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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.
- a[3]
Explain why the weighted aggregate index number may not accurately reflect current changes in consumption.
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