Construction of consumer price index

Dear Student
The steps involved in the construction of a consumer price index are:
(1) Determining the scope and coverage of the Index: The first step is to decide the particular class of people, for whom the index numbers is intended.

(2 ) Family Budget Enquiry: The next step is to conduct a family budget enquiry by randomly selecting a sample of adequate number of representative families from the class of people, for whom the index is designed

(3)  Obtaining Price Quotations: The third and the last step is to collect retail prices.

  • 0
What are you looking for?