Which one of the following statements is CORRECT in the context of price indices? (A) A weighted average of prices of raw materials and semifinished goods, relative to a base-year is known as the Consumer Price Index. (B) A weighted average of prices of consumer goods, relative to a base-year is known as the Producer Price Index. (C) The price index that considers the quantity of goods in the base-year as weight is known as the Laspeyres Index. (D) The price index that considers the quantity of goods in the base-year as weight is known as the Paasche Index.

IIT JAM 2026 Question 21: Index numbers and time-series basics

Which one of the following statements is CORRECT in the context of price indices?

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This question is on Constructing price indices, part of Index numbers and time-series basics in Statistics.

Building an index from prices and quantities with different weighting schemes.

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