Question

For index numbers like stock market indexes A. the numbers are not measured in dollars or any other units and their values are meaningful by themselves. B. the numbers are measured in dollars and changes in their values are more important than the values themselves. C. the numbers are measured in dollars and their values are meaningful by themselves. D. the numbers are not measured in dollars or any other units and changes in their values are more important than the values themselves.

Answer 1

Answer:

Correct option D

Explanation:

An index number is the measure of change in a variable (or group of variables) over time. It is typically used in economics to measure trends in a wide variety of areas including: stock market prices, cost of living, industrial or agricultural production, and imports. Index numbers are one of the most used statistical tools in economics.

Index numbers are not directly measurable, but represent general, relative changes. They are typically expressed as percents.

Index numbers are not measured in dollars or any other units and changes in their values are more important than the values themselves.

Answer 2

Answer:

The correct answer is letter "D": the numbers are not measured in dollars or any other units and changes in their values are more important than the values themselves.

Explanation:

A Market Index combines several stocks to create one aggregate value that is used to measure a market's or sector's performance. A market index represents an entire stock market providing a benchmark to track a market's changes over time.

Index numbers represent quantity compared with a standard or base value. The base value equals 100 and the index number is expressed as a ratio (percentage). That is the reason why changes in the values are most important than the values alone.