The circular test is satisfied by which index number formula? MCQ with Answer and Explanation

The circular test is satisfied by which index number formula?
A. Laspeyres
B. Simple aggregative
C. Paasche
D. Fisher's ideal
Answer: Option D
Solution (By JKExamLibrary)
Fisher's ideal index satisfies the circular test under certain conditions due to its geometric mean formulation, while Laspeyres and Paasche generally fail it due to fixed weight structures.

This question belongs to: Accountancy and Statistics Statistics

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