Start learning →

What drawback can chained indices show when errors accumulate?

AThey can drift over time
BThey stay tied to one year
CThey need no price data
DThey require far less data
Answer & Solution
Correct answer: A. They can drift over time
Small errors in each link compound through multiplication, so the chain can drift.
Practise this question with Quill — CA Foundation →

Keep practising Index Numbers

Browse all Index Numbers questions for CA Foundation, or explore more Quantitative Aptitude topics.

Start a Index Numbers lesson →
Related questions