Which of the formula is used in chain indices: ________________?
Correct answer: C. pn/pn-1 x100
- A. ∑pn/∑po x100
- B. pn/po x100
- C. pn/pn-1 x100
- D. Both (a) and (b) but not (c)
Explanation
A chain index compares each period with the immediately preceding period, so its link relative is Pn/Pn−1 × 100. Comparing every period directly with one fixed base gives a fixed-base index instead.
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