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

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Laspeyres price index uses weights of:

A. Average of base and current quantities

B. Base period quantities

C. Fixed arbitrary weights

D. Current period quantities

Answer: Option B

Solution (By JKExamLibrary)

Laspeyres index is Σ(p₁q₀)/Σ(p₀q₀) × 100, using base period quantities as weights.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error

A researcher studying literacy rates in rural India collects data by personally visiting villages and conducting face-to-face interviews. This approach exemplifies:

A. Secondary data collection from census reports

B. Primary data collection through mailed questionnaires

C. Primary data collection through direct personal investigation

D. Secondary data collection through indirect oral investigation

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Correct Answer: Option C

Explanation:
Direct personal investigation involves the investigator collecting data firsthand through direct interaction with respondents, which is a method of primary data collection.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

The mode can be located graphically using a:

A. Pie chart

B. Histogram

C. Ogive

D. Frequency polygon

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Correct Answer: Option B

Explanation:
In a histogram, the mode corresponds to the highest bar (modal class); for grouped data, the exact mode can be interpolated within this class using the histogram's geometry.

This question belongs to: Accountancy and Statistics Statistics