The factor reversal test links: MCQ with Answer and Explanation

The factor reversal test links:

A. Two different base years

B. Price index and quantity index to the value ratio

C. Time series and cross-sectional data

D. Price index and cost of living index

Answer: Option B

It requires Price index × Quantity index = Value index.

This question belongs to: Accountancy and Statistics Statistics

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Question #1 Report Error

For two events, P(A)=0.4, P(B)=0.3, and P(A∩B)=0.12. Which of the following is true?

A. A and B are complementary.

B. A and B are mutually exclusive.

C. A and B are independent.

D. P(A∪B)=0.52.

Correct Answer: Option C

Explanation:
0.4×0.3=0.12, so independent. Mutually exclusive would need 0. P(A∪B)=0.4+0.3-0.12=0.58.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

If (AB) = 0, the two attributes are:

A. Completely disassociated

B. Perfectly correlated

C. Independent

D. Completely associated positively

Correct Answer: Option A

Explanation:
(AB)=0 means no unit possesses both A and B, indicating perfect negative association.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

The horizontal axis of a histogram represents:

A. Frequencies

B. Class marks

C. Class boundaries

D. Cumulative frequencies

Correct Answer: Option C

Explanation:
In a histogram, the x-axis shows the continuous class boundaries (or limits).

This question belongs to: Accountancy and Statistics Statistics