Question

The index number of base yera is :

• A. 10
• B. 100
• C. 200
• D. 300

Answer 1

The Correct Option is B

Understanding how the index number of a base year is set is crucial in mathematics and economics. An index number is a statistical measure used to indicate changes or movements in a phenomenon like price levels, economy, etc., over time. By convention, and to simplify calculations and comparisons, the index number for the base year is set at:

1. Base Year: The base year is the standard reference point for an index number. It serves as the benchmark against which past and future numbers are compared.
2. Index Number for Base Year: Typically, the index number for the base year is set at 100. This creates a uniform reference, making it easier to understand percentage changes in subsequent years.

Thus, for the given options, the correct index number for the base year is 100.