Assertion (A): Fisher's Index is called the 'Ideal' index. Reason (R): It uses only base year quantities. MCQ with Answer and Explanation

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Assertion (A): Fisher's Index is called the 'Ideal' index. Reason (R): It uses only base year quantities.

A. A is true but R is false

B. Both A and R are true and R is the correct explanation

C. A is false but R is true

D. Both A and R are true but R is NOT the correct explanation

Answer: Option A

Solution (By JKExamLibrary)

A is true, but R is false because Fisher's index uses both base and current year quantities (Geometric mean of L and P).

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error

Which of the following is a merit of secondary data?

A. Originality

B. Specific to research objectives

C. High accuracy

D. Saves time and cost

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Correct Answer: Option D

Explanation:
Secondary data is already available, saving the time and expense of collection.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

If Laspeyres' index is 121 and Paasche's index is 100, Fisher's index is:

A. 121

B. 100

C. 110.5

D. 110

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Correct Answer: Option D

Explanation:
Fisher's = square root of (Laspeyres * Paasche) = sqrt(121 * 100) = sqrt(12100) = 110.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

The time reversal test is satisfied by:

A. Laspeyres index

B. Fisher index

C. Simple aggregative index

D. Paasche index

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Correct Answer: Option B

Explanation:
Fisher is the only one among these that satisfies time reversal test.

This question belongs to: Accountancy and Statistics Statistics

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