Explain what an index number is and how it is computed. What ...

[bb]

Explain what an index number is and how it is computed. What level of measurement is required to compute index numbers?

Question 2

On a perceptual map, brands depicted as points in the map close together are those perceived as similar.
 a. True
  b. False
 Indicate whether the statement is true or false

[kaykay69]

Answer to Question 1

Index numbers represent simple data transformations that allow researchers to track a variable's value over time and compare a variable with other variables. Recalibration allows scores or observations to be related to a certain base period or base number. To calculate an index number, a base number is first selected. Index numbers are computed by dividing the score for each category by the base number and multiplying by 100 . If the data are time-related, a base year is chosen, and the index numbers are computed by dividing each year's activity by the base-year activity and multiplying by 100 . Index numbers require ratio measurement scales.

Answer to Question 2

True