An index number measures: MCQ with Answer and Explanation

An index number measures:

A. Absolute change

B. Relative change over time or space

C. Average only

D. Total value

Answer: Option B

Index numbers measure relative changes in a variable compared to a base period.

This question belongs to: Accountancy and Statistics Statistics

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Question #1 Report Error

The chain base index number is calculated by:

A. Taking average of Laspeyres and Paasche

B. Using link relatives and chaining them

C. Linking fixed base index numbers

D. Applying Fisher's formula

Correct Answer: Option B

Explanation:
Chain indices are built by multiplying link relatives (current period relative to previous period).

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

If Yule's Q = 0.8, it indicates:

A. Strong negative association

B. Weak association

C. Strong positive association

D. Independence

Correct Answer: Option C

Explanation:
Q close to +1 indicates strong positive association.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

A box contains 4 white and 6 black balls. A ball is drawn and not replaced. Then another ball is drawn. The probability that both are white is:

A. 2/15

B. 12/90

C. 6/90

D. 1/6

Correct Answer: Option A

Explanation:
(4/10)×(3/9)=12/90=2/15.

This question belongs to: Accountancy and Statistics Statistics