Question

Distinguish between:

Simple Index Number and Weighted Index Number

Answer 1

	Simple Index Number	Weighted Index number
Meaning	Simple index numbers are those that are calculated by assigning equal importance (weight) to each commodity.	Weighted index numbers are index numbers that are calculated by assigning an appropriate importance (weight) to each commodity.
Nature	The measurement of simple index numbers is comparatively simple.	The measurement of weighted index numbers is comparatively complex.