Chain base index numbers are calculated by: MCQ with Answer and Explanation

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Chain base index numbers are calculated by:

A. Fixing one base period for all comparisons

B. Using the previous period as base for each link

C. Using geometric mean of prices only

D. Averaging fixed base indices

Answer: Option B

Solution (By JKExamLibrary)

Chain indices compute period-to-period changes (e.g., 2021/2020, 2022/2021) and chain them multiplicatively, allowing flexibility but complicating long-term interpretation due to changing bases.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error

In a 2×2 table, if (AB)=100, (Aβ)=150, (αB)=200, (αβ)=250, the total N is:

A. 800

B. 600

C. 900

D. 700

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Correct Answer: Option D

Explanation:
N = sum of all ultimate class frequencies = 100 + 150 + 200 + 250 = 700. This is the total population classified by the two attributes.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

The sum of absolute deviations is minimum when taken from:

A. Arithmetic mean

B. Geometric mean

C. Mode

D. Median

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Correct Answer: Option D

Explanation:
The median minimizes the sum of absolute deviations, Σ|x - M|.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

The heading of a column in a table is known as:

A. Caption

B. Footnote

C. Stub

D. Title

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Correct Answer: Option A

Explanation:
Caption or box-head provides headings for columns.

This question belongs to: Accountancy and Statistics Statistics

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