Question 1. What is an index? Why do we use indices? What are the different types of indices? How is each type of index used? The Consumer Price Index (CPI) is one index mentioned in business news reports. What other index numbers do you feel would be helpful for organizations to run their business and why?
Question 2. Are weighted indices more valuable than unweighted indices? Why? How is the base year of an index selected? Why is the base year important to the data? Is forecasting independent of indexing? Are forecasting and indexing ever used together? If so, how?