For a dataset with extreme outliers, which measure of central tendency is LEAST affected? MCQ with Answer and Explanation
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Question #1
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Assertion (A): The arithmetic mean is not a robust measure of central tendency. Reason (R): It is highly influenced by outliers. Choose the correct option:
Correct Answer: Option A
Explanation:
The mean is sensitive to extreme values, making it non-robust. R explains why.
The mean is sensitive to extreme values, making it non-robust. R explains why.
This question belongs to:
Accountancy and Statistics
Statistics
Question #2
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The factor reversal test requires that:
Correct Answer: Option A
Explanation:
Factor reversal test checks if the product of a price index and its corresponding quantity index equals the value index (Σp₁q₁/Σp₀q₀), ensuring consistency between price and quantity measurements.
Factor reversal test checks if the product of a price index and its corresponding quantity index equals the value index (Σp₁q₁/Σp₀q₀), ensuring consistency between price and quantity measurements.
This question belongs to:
Accountancy and Statistics
Statistics
Question #3
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Wholesale Price Index (WPI) is primarily used by policymakers to monitor:
Correct Answer: Option B
Explanation:
WPI reflects price changes at the wholesale/producer level, serving as an early indicator of inflationary pressures in the production pipeline before they reach consumers via CPI.
WPI reflects price changes at the wholesale/producer level, serving as an early indicator of inflationary pressures in the production pipeline before they reach consumers via CPI.
This question belongs to:
Accountancy and Statistics
Statistics
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