Question:
Which of the following is not a problem in construction of a price index number?
Which of the following is not a problem in construction of a price index number?
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Separate genuine index-number theory problems (base year, commodities, prices, weights) from field-survey administration.
Updated On: Jul 4, 2026
- Selecting the number of investigators for collecting price/quantity data
- Selecting the price of commodities
- Selecting the number of commodities to be included
- All of these
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The Correct Option is A
Solution and Explanation
Step 1: The classical theory of index numbers identifies specific theoretical problems that must be resolved while constructing a price index: defining the purpose of the index, choosing the base period, selecting the commodities and how many of them to include, deciding which prices (wholesale or retail, from which sources) to use, assigning appropriate weights, and choosing a suitable averaging formula.
Step 2: Selecting the price of commodities (option B) and selecting the number of commodities to be included (option C) are both explicitly part of this classical list of construction problems.
Step 3: Deciding the number of investigators needed to physically collect the price and quantity data is a field-survey or administrative logistics matter, not a theoretical problem of index number construction as defined in statistical theory.
Step 4: Since option A is not a recognised construction problem while B and C are, the answer cannot be "all of these" either. So the correct answer is option A.
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