Laspeyres price index uses quantities of: MCQ with Answer and Explanation

Laspeyres price index uses quantities of:

A. None of the above

B. Current period as weights

C. Both periods equally

D. Base period as weights

Answer: Option D

Laspeyres = Σp₁q₀ / Σp₀q₀ × 100, using base quantities.

This question belongs to: Accountancy and Statistics Statistics

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Question #1 Report Error

The process of checking and correcting data for errors before tabulation is called:

A. Editing

B. Compilation

C. Analysis

D. Coding

Correct Answer: Option A

Explanation:
Editing involves scrutinizing the collected data to identify and correct errors.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

The process of arranging raw data into a table is:

A. Editing

B. Classification

C. Tabulation

D. Coding

Correct Answer: Option C

Explanation:
Tabulation is the systematic presentation of data in rows and columns.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

If the price index is 125 and the quantity index is 120, the value index is:

A. 145

B. 130

C. 150

D. 125

Correct Answer: Option C

Explanation:
Value ratio = price ratio × quantity ratio. In index form (decimal), 1.25 × 1.20 = 1.50, i.e., 150.

This question belongs to: Accountancy and Statistics Statistics