The Circular Test of an index number is an extension of the: MCQ with Answer and Explanation

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The Circular Test of an index number is an extension of the:

A. Time Reversal Test

B. Proportionality Test

C. Factor Reversal Test

D. Unit Test

Answer: Option A

Solution (By JKExamLibrary)

The Circular Test requires P01 * P12 * P20 = 1, extending the logic of the time reversal test to multiple periods.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error

The 'stub' of a table refers to:

A. The box-head

B. The title

C. The column headings

D. The row headings (left part)

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Correct Answer: Option D

Explanation:
The stub is the leftmost column containing the row captions or descriptions.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

For a positive dataset, if the harmonic mean is equal to the arithmetic mean, what can be concluded?

A. The data are symmetric

B. The median equals the mode

C. There is one outlier

D. All values are equal

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Correct Answer: Option D

Explanation:
For positive numbers, AM = GM = HM only when all values are identical.

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Question #3 Report Error

The crude birth rate is called 'crude' because:

A. It does not account for the age-sex composition

B. It includes stillbirths

C. It is based on sample

D. It is inaccurate

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Correct Answer: Option A

Explanation:
Crude rates use total population, ignoring structure.

This question belongs to: Accountancy and Statistics Statistics

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