The factor reversal test is satisfied by: MCQ with Answer and Explanation

The factor reversal test is satisfied by:
A. Fisher index
B. Paasche index
C. Laspeyres index
D. Marshall-Edgeworth index
Answer: Option A
Solution (By JKExamLibrary)
Only Fisher's ideal index satisfies both the time reversal and factor reversal tests.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error
If the arithmetic mean of 8, 12, x, 6, 9 is 8, then x is:
A. 5
B. 7
C. 8
D. 4

Correct Answer: Option A


Explanation:
(8+12+x+6+9)/5 = 8 → 35 + x = 40 → x = 5.

This question belongs to: Accountancy and Statistics Statistics
Question #2 Report Error
Conditional probability P(B|A) is defined as P(A ∩ B) / P(A) provided that:
A. P(B) > 0
B. A and B are independent
C. P(A ∪ B) = 1
D. P(A) > 0

Correct Answer: Option D


Explanation:
The definition of conditional probability requires P(A) > 0 to avoid division by zero; if P(A)=0, P(B|A) is undefined.

This question belongs to: Accountancy and Statistics Statistics
Question #3 Report Error
The arithmetic mean of a set of values is 8. If each value is increased by 5, the new mean is:
A. 8
B. 3
C. 40
D. 13

Correct Answer: Option D


Explanation:
Adding a constant to each observation increases the mean by the same constant.

This question belongs to: Accountancy and Statistics Statistics