A fixed base index uses: MCQ with Answer and Explanation

A fixed base index uses:

A. A different base period for each time point

B. The immediately preceding period as the base for each calculation

C. Geometric mean of multiple base periods

D. A single, constant base period for all comparisons

Answer: Option D

Solution (By JKExamLibrary)

Fixed base index selects one period as the base (index=100) and expresses all other periods relative to it, enabling consistent long-term trend analysis without base drift.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error

If P(A)=0.4, P(A∪B)=0.7, then the probability of B will be maximum when A and B are:

A. Independent

B. A is a subset of B

C. Mutually exclusive

D. B is a subset of A

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Correct Answer: Option B

Explanation:
P(A∪B)=P(A)+P(B)-P(A∩B). To maximize P(B) given P(A∪B)=0.7 and P(A)=0.4, set P(A∩B)=P(A)=0.4 (i.e., A⊂B). Then 0.7=0.4+P(B)-0.4 => P(B)=0.7 max.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

Which of the following statements is true about the median?

A. It is always unique.

B. It is the 50th percentile.

C. It cannot be computed for grouped data.

D. It is heavily influenced by outliers.

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Correct Answer: Option B

Explanation:
Median is the 50th percentile. It is unique for a given dataset (may be an interval for grouped). It can be computed for grouped data and is robust to outliers.

This question belongs to: Accountancy and Statistics Statistics